MS KANIKA MARBLES Vs. CCE, JAIPUR

JUDGEMENT

(1.) THE brief facts in these appeals are that on 1.3.97 the officers of the Central Excise Division, Ajmer visited the factory premises of the appellants M/s Kanika Marbles Granites. On physical verification of the stock, 5320.69 Sq mtrs of the finished product viz. irregular marbles slabs were found short as against the entry made in statutory record. A statement was recorded from Shri O.P. Khandelwal, Director of the Company who admitted these aforesaid shortage. He further stated that due to his prolonged absence, the parties who get their block shown in their factory, had lifted the marble slabs forcibly. The party deposited a sum of Rs. 1,59,621/ - in their PLA on 12.3.97 in respect of the duty involved on the shortage of marbles slabs.

(2.) SUBSEQUENTLY , M/s Kanika Marbles and Shri O.P. Khandelwal, Director, were issued a show cause notice dated 27.4.98 in which M/s Kanika Marbles were called upon to show cause why duty amount of Rs. 1,59,621/ - should not be recovered from them under Section 11A of the Central Excise Act, 1944 and why penalty should not be imposed on them under Section 11 AC and Rules 9(2), 52A and 173Q of Central Excise Rules, 1944. Shri O.P. Khandelwal, Director of the company was called upon to show cause why penalty should not imposed on him under Rule 209A.

(3.) ON considering the reply of both the noticee parties, the Assistant Commissioner of Central Excise, Jaipur vide his order dated 13.11.98 confirmed the Central Excise duty of the aforesaid amount on the appellants and further ordered for the appropriation of the amount already paid by them through their P.L.A. He also imposed penalty of equivalent amount on the party under Section 11AC and a penalty of Rs. 2000/ - under Rules 9(2) read with Rules 52A, 173Q and 226 of the Central Excise Rules 1944 on them. He also imposed a penalty of Rs. 5000/ - on Shri O.P. Khandelwal, Director under Rule 209A.