PRIYA TEXTILES (PVT.) LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioners have invoked the inherent jurisdiction of this Court by filing petition under section 482 of the Code of Criminal Procedure, 1973, for quashing the complaint Annexure P3 for offences under sections 9(1), 9-AA of the Central Excise and Salt Act, 1944 read with Rules 9(1), 52-A, 53, 173-G and 226 of the Central Excise Act, 1944, inter alia, on the ground that the man-made fabrics being still under the process of manufacture and not fit for marketing, the petitioners had not committed any offence punishable under the above-referred sections of the Act and the Rules.

(2.) THE resume of facts given in the complaint annexure P3 reads as under :-

(3.) THE perusal of the impugned complaint, reproduced above reveals that the officials of the Central Excise Staff found fully finished man-made fabrics lying in the accused-party's E. P. 4 store room, 617.05/691 Sq Mtrs. of processed and fully finished man-made fabrics valued at Rs. 13,612.70 involving Central Excise Duty amounting to Rs. 1,399.28 (AED Rs. 1382/- CESS Rs. 17.28) were found short than the recorded balance in their R.G.I. Register. Similarly, as a result of further physical verification, 6533 Mtrs./5884 Sq. Mtrs. of processed man-made fabrics (under process) valued at Rs. 1,17,871.46 involving Central Excise Duty amounting to Rs. 8,447.35 (AED Rs. 8300.25 + CESS Rs. 147.10) were found in excess of the quantities recorded against various/respective lot numbers and 45166.60 Mtrs./46133 Sq. Mtrs. of processed man-made fabrics valued at Rs. 8,80,754.28 involving Central Excise Duty amounting to Rs. 73,604.11 (AED Rs. 72,450.75 +CESS Rs. 1153.36) were found short than the quantities recorded against various/respective lot Nos. The physical verification also revealed that 14971.35 Mtrs./13472 Sq. Mtrs. of processed fabrics (under process) valued at Rs. 1,84,456.74 involving Central Excise Duty amounting to Rs. 5930.65 (BED Rs. 1887.60 X AED(T) Rs. 283.14 + AED Rs. 4433.11 + CESS Rs. 336.80) were in excess of the quantity recorded against various/respective lot numbers and 27,147.35/24431 Sq. Mtrs. of processed cotton fabrics valued at Rs. 2,92,533.33 involving Central Excise Duty amounting to Rs. 10273.47 (BED Rs. 4093.00 + AED (T) Rs. 613.95 + AED Rs. 5052.75 + CESS Rs. 610.77) were short than the quantity recorded against various/respective lot numbers.