PRINCE GUTAKA, SHRI HARIBHAI Vs. CCE NEW DELHI

JUDGEMENT

(1.) THIS order will dispose of four appeals filed by the appellants bearing Nos.E/2181/98 -NB, E/2178/98 -NB, E/1927/98 -NB and E/2022/98 -NB. All these appeals arise out of common order in original dated 27th April 1998 passed by the Commissioner of Central Excise, Delhi as adjudicating authority. He through this impugned order had confirmed the duty demand of Rs.61,73,803/ - on appellant No.1 the company, M/s. Prince Gutaka Ltd. (hereinafter referred as M/s. PGL Company)] and imposed penalty of Rs.30 lakhs on them. He had also imposed penalty of Rs.10 lakhs on the Managing Director of this company, Shri Hari Bhai Lalwani (Appellant No.2) and of Rs.5 lakhs on Sunil Kumar Khanna (Appellant No.3) under Rule 209 -A of the Rules. The Commissioner had also ordered the confiscation of the vehicle with the option to the owner (Shri Om Prakash Tolani, Appellant No.4) to get the same redeemed on payment of redemption fine of Rs.50,000/ -. He had further ordered the confiscation pan masala and raw material found lying in the factory premises with option to get the same redeemed on payment of redemption fine of Rs.5000/ - and Rs.25000/ - respectively by the owner. Similarly, the plant and machinery had been also ordered by him to be confiscated with option to the owner to get the same redeemed on payment of redemption fine of Rs.3 lakhs.

(2.) THE facts giving rise to these appeals may briefly be stated as under:

(3.) M /s. PGL Company were engaged in the manufacture of pan masala under the brand name "prince" and "yamu". The company had two manufacturing units one located at Noida and the other at village Dallupur both registered with the Central Excise Dpartment, but the company was found running another unit at F -42, Jawahar Park, Laxmi Nagar, Delhi where they were indulding in the manufacture of pan masala under the same brand name and were clearing the goods in a clanaestine manner without payment of duty. At the time of visit of that unit on the basis of intelligence, by the officers of Central Excise 16/17 workers were found working and the panchnama dated 21.10.94, the date of visit was prepared in the presence of two independent witneesses regarding the machines installed in that premises. The new material and the finished goods (pan masala) lying the premises were also seized. The supervisor of the unit Babu Bhai T.A. Could not produce any register/challan regarding the receipt of the raw material and the production of the finished goods. One worker of the factory was also found loading empty bags and rejected pouches of Prince Gutaka and Yamu pan masala in a vehicle with the help of Kesh Nath, Driver. The statement of Kesh Nath, Driver of the vehicle was also recorded who admitted the transportation of the raw material to the factory from outside and also of the finished goods from the factory to the market. The photographs of the machines installed in the premises were also taken. The statement of K. Soman who was found working in the factory at that time as operator was also recorded wherein he stated that he was workin gin PGL company since 1989 and the said company had installed ten machines int he factory premies. He further deposed that he was transferred by the company from the Noida Unit to the unit at Laxmi Nagar. He also stated that the overall work of the factory was being looked after by Shri sunil Kumar Khanna (appellant NO.3) who was employee of the company PGL. The ledger, loose sheets and other documents including identity cards, calendar diary, rough notes etc. were also seized from his room. On these very lines statement of Babu Bhai T.A. who was found working as supervisor in the factory at that time, was also recorded. He too admitted that he was employee of the company PGL and ten machines were installed i the factory by Sunil Kumar Khanna (appellant No.3) and that no account of the material received and the goods manufactured was maintained.