SHRI S.K. GARG Vs. CCE KANPUR

JUDGEMENT

(1.) THIS appeal has been filed by the appellant Shri S.K. Garg against the impugned order of the Commissioner imposing penalty of Rs.2.5 lakhs on him under Rule 209 -A of the Central Excise Rules.

(2.) THE facts leading to the filing of the present appeal may briefly be stated as under:

(3.) M /s. Kanpur Pesticides and Chemicals (P) Ltd., Industrial Area Kanpur were engaged in the manufacture of S.O.Dyes and those were classifiable under sub -heading 3204.29 of the CETA. The factory premises of the company on receipt of intelligence report was raided and searched on 16.2.95 by the Central Excise Officers. The search was also conducted on the premises of their dealers, stockists and Directors/Executives of the company. On scrutiny of record it (SIC) that the assessable value of the goods declared by the company at the time of clearance was, much less than the actual value at which those were sold. It also revealed that the goods were cleared to the trading firm which was managed by the present appellant, Shri S.K.Garg. The statement of the Assistant Worksman and Production Superintendent, was recorded wherein he admitted that billing was done of inferior and cheaper quality of dyes, while actuall it was not so. Shri A.K. Jhunjhunwala who was running the company was also examined and he in his statement admitted that the day -to -day affairs of the company were looked after Shri S.K. Garg, the present appellant. He also admitted evasion of the excise duty during the period 1990 -91 to 1994 -95. Similarly, Shri S.K. Garg, the appellant accepted the evasion of the Central Excise duty and voluntarily deposited the duty amount of Rs.1,53,00,000/ -. The show cause notice was accordingly issued to the above said company and Shri S.K. Garg, the present appellant and Shri A.K. Jhunjhunwala, by the Commissioner of Central Excise on 12.11.97. The penalty was proposed to be imposed on the appellant under Rule 209 -A of the Rules. In reply to that notice, Shri S.K. Garg, the appellant, however, denied his connection with the company M/s.Kanpur Pesticides and Chemicals (P) Ltd. and alleged that the day -to -day work of the factory was looked after by one of the Directors and not by him. The Commissioner afforded opportunity of personal hearing to all the notices including the present appellant. He through the impugned order imposed penalty of Rs.20 lakhs on the company under rule 173 -2 and of Rs.2.5 lakhs each on Shri A.K. Jhunjhunwala as well as on the present appellant, S.K.Garg under Rule 2091 -A of the Rules.