KIRIT PAREKH Vs. CCE AND C

JUDGEMENT

(1.) THESE two appeals arise from the order in original No. Cus. 10/96 dated 12.12.1996 passed by the Commissioner, Central Excise, Hyderabad imposing penalty on the appellants under Section 112(b) of the Customs Act, 1962 of Rs. 7.5 lakhs each. Separate penalties have been imposed on other appellants whose appeals are not listed before us. The findings against these two person recorded in para 18 of the impugned order are extracted below:

(2.) THE allegation against these two appellants are that they are owners of Silver Refinery and that they had received for melting purpose 23 numbers of silver bars of foreign origin. Kirith Parekh who is the Managing Partner of the firm in his statement dated 29.8.92 before the Assistant Director, DRI stated that these contraband silver bars were received by him at 7.30 AM in two Jeeps and delivered for the purpose of melting. He received a call from Tippu's wife requesting him to keep the contraband silver bars for melting purpose. She also stated that these were as per Tippu's instructions. However, he was not prepared to melt the same and requested her to take back the silver bars over telephone No. 523516 and accordingly 10 silver bars were transported to the residence of Pawan Kumar Sugandh between 8 AM and 11 AM on 28.8.92. But that time the officials reached his refinery and carried out search and seized the silver bars.

(3.) IN his statement the other partner of the firm, Pankaj B. Parekh, stated that he is a sleeping partner and he was not directly dealing with the business and that he was not fully aware of the day to day business. He further stated that on 28.8.92 at about 7.30 AM two jeeps came and delivered 23 silver bars to the Swastik Refinery and that his Cousin Kirith Parekh is supervising the Refinery. He was incidentally present in the Refinery and his cousin told him to remove the contraband silver bars and transport the same to the residence of Pawan Kumar and in the mean while officials came and seized the goods. It was alleged that these two persons had abetted in the removal of these 23 contraband silver bars and amongst other persons a case has been made out against them as also including on Vishan Singh alias Tippu Soni. Jippu Soni has not appeared for cross examination as requested by the appellants nor has he filed reply to the show cause notice. It appears that he has not filed any appeal before the Tribunal. In his statement before the Investigating Officers on he stated that he came to know about the seizure of contraband silver on the evening itself through his wife at about 7 PM, that he received a phone call from Gwalior on 27.8.92 in the late night at about 11 PM that his brother in law BD Verma expired in Gwalior and hence he left by the early morning flight to Delhi and from there to Gwalior on 28.8.92, that though he was from Hyderabad, he was continuously keeping contact over phone with his wife at their residence and knowing the development at Hyderabad and after knowing about the seizure of 23 silver bars at Hyderabad, as he thought that he may be arrested by DRI officers and so he did not come to Hyderabad, from Gwalior and he went to Jaipur and from there he went to Bombay and from Bombay he reached Bangalore on 16.9.92 and he was traced by the officers on 17.9.92 and was served with summons. The finding of the Commissioner against these persons are extracted above. (Para 1)