STACKLINE SYSTEMS PVT LTD Vs. DY. COMMISSIONER LEGAL

JUDGEMENT

(1.) This Criminal Petition is filed under Sec. 482 of the Code of Criminal Procedure, 1973 (for short 'Cr.P.C.') by the petitioners/Accused, to quash the proceedings against them in CC.No.32/2015 on the file of Special Judge for Economic Offences at Hyderabad. The offence alleged against the petitioners are under Sec. 9 of the Central Excise Act, 1944.

(2.) Heard learned Counsel for the petitioners and Sri Domnic Fernandes, learned Special Senior Standing Counsel for the respondent.

(3.) The Deputy Commissioner (Legal) of Central Excise and Service Tax, filed a complaint before the Special Judge for Economic Offences alleging that the 1st petitioner represented by the 2nd petitioner who is the Managing Director, evaded Central Excise duty in the guise of trading of Modular Furniture, falling under the heading 9403 of the first schedule to the Central Excise Tariff Act, 1985, even after crossing the threshold exemption limit prescribed under notification No.8/2003-CE, dtd. 1/3/2003, as such liable under Sec. 9 of the Central Excise Act, 1944. The period of offence was during the year 2005-2006. The said fact was known to the agency, when the officers of the Central Excise (Hyd-1) Commissioner visited the factory premises of Accused No.1 on 20/2/2008 and scrutinized the records of the company. It was found that the 1st petitioner company maintained records with respect to production of finished goods, receipt and usage of raw material and they had not paid duty on the clearances made during the financial year 2005-2006 over and above the limit of Rs.1.00 crore as specified in the notification dtd. 1/3/2003. Resultantly, non-payment of duty was to an extent of Rs.32,29,153.00 on the valuation of Rs.1,97,86,473.00.