BAVAJI AND MOTIBHAI Vs. INSPECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) The petitioner, Messrs. Bavaji and Motibhai (hereinafter referred to as the said firm), which is registered under the Indian Partnership Act and has its registered office at No. 4, Rup Chand Roy Street, Calcutta, has impeached an order in Annexure 'F', passed by the Central Board of Excise and Customs, claiming the same amongst other to be contrary to law and passed on erroneous interpretation of Rule 147 of the Central Excise Rules, 1944 (hereinafter referred to as the said Rules), framed under the provisions of Central Excises and Salt Act, 1944 (hereinafter referred to as the said Act).

(2.) The said firm is a dealer in Tobacco and carries on business at Calcutta and other places in India and holds Central Excise Licences for both duty paid and non-duty paid Tobacco. For the said business, the said firm has a private bended warehouse at No. 171A, Mahatma Gandhi Road, Calcutta, which they at all material times have used and still are using, for storage of non-duty paid Biri Tobacco, brought from the growing areas of Gujarat and other places. The said warehouse has been claimed to be working since the imposition of Excise duty on Tobacco in 1943. The said firm has further claimed to be possessing and working the said warehouse under valid licence and authority and to have kept in store there dutiable Tobacco, for sale to customers after payment of Central Excise duty.

(3.) On 14th February, 1969, there was a theft in the said warehouse between 7 to 8 p.m. Immediately, on receiving information of such theft, the said firm brought the matter to the knowledge and notice of the local Police Station, who- on investigation and enquiry apprehended some persons suspected to be involved in the offence. In fact, some persons were arrested in connection with such theft. It appeared that 32 bags of non-duty paid Biri Tobacco to be lost as a result of such theft.