CCE, CHANDIGARH Vs. MONGA BROTHERS & TARSEMLAL

JUDGEMENT

(1.) BOTH the appeals have been filed by the Revenue against the common order in appeal dated 25.9.99 vide which the Commissioner (Appeals) had set aside the penalty of Rs.1,00,000/ - imposed on Shri Rajeev Gupta, respondent and of Rs.10000/ - on Shri Tarsem Lal Singla, respondent which was imposed on both of them by the Deputy Commissioner through order in original dated 16.6.98.

(2.) THE facts are not much in dispute. M/s. Monga Brothers Ltd. Company and the present respondents who were the Manager and Managing Director of the company were proceeded against on the basis of show cause notice dated 11.7.95 issued after conducting raid on their factory as clandestine removal of the goods without payment of duty was detected by the Excise staff on 10.2.95. It was found during the raid that unauthenticated invoices were being prepared for clearing the goods on tractor trolly and the trucks. The record of the company was taken into possession and the statements of the respondents were also recorded. The unaccounted goods and truck were also seized.

(3.) AFTER getting reply to the show cause notice from the company as well as the present respondents, the Deputy Commissioner through the orders in original ordered confiscation of the goods and also imposed redemption fine of Rs.50,000 - for release of the truck and of Rs.75,000/ - for the release of the goods. Besides this he also imposed penalty of Rs.3,00,000/ - on the company under Rule 173 -Q and of Rs.10,00,00 -/ - on respondents Tarsem Lal Singla under Rule 209 -A as he was manager of the appellant company at that time and of Rs.1,00,000/ - on respondents, Rajeev Gupta, under Rule 225 of the Central Excise Rules as he was Managing Director of the company at that time.