BIRLA TYRES Vs. UNION OF INDIA

JUDGEMENT

(1.) This is an application under Section 482 of the Criminal Procedure Code with a view to quash a proceeding being R.C. Case No. 7(A) of 1996 started by the C.B.I, on 12th January, 1996 against the petitioners and others for alleged offences under Section 120B/420 of the Indian Penal Code and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act.

(2.) The short case of the petitioners is that petitioner No. 1 is a company engaged in the business of manufacture of automobile tyres, tubes etc., petitioner No. 2 is a Vice President of the said company and petitioner No. 3 is the Senior Manager (Commercial) of the Company. The production unit of the Company is situated in the District of Balasore in Orissa and the Company has its clearing and forwarding agents all over India. The Company has its Head Office at 53, Syed Amir Ali Avenue, Calcutta.

(3.) The Commissioner, Central Excise & Customs, Bhubaneswar issued three identical show cause notices in the name of the petitioners being No. C-V(40) 15/ADJN-11A/26/95/255 44A, dated 29th June, 1995. The allegation is this that the petitioners did not maintain daily production register and tyres manufactured much in excess of the recorded version as contained in the statutory register, namely RG1. The allegation is that by means of suppression of production and clandestine removal of tyres the petitioner company has evaded Central Excise Duty to the tune of more than 10 crores. The further allegation is that the suppressed production for the period 1992 to 1995 were to the extent of 52787,23664 and 15212 tyres respectively. The further allegation is that the 55 tyres which were seized from the premises of the company at Balasore were removed clandestinely without payment of Excise Duty. It is also alleged that 36 Metric Tonnes of Carbon Black were found to be stored in another unapproved godown at Sambalpur. It is also alleged that the Company misused the Modvat credit facility on the same 36 Metric Tonnes of Carbon Black to the Tune of more than one and half lacs, but no intimation was given to the competent authority. The petitioner Nos. 2 and 3 were alleged to be the persons who are directly responsible for this clandestine removal.