GLOBE SYNTHETICS LTD. Vs. CCE

JUDGEMENT

(1.) The above captioned appeals have been preferred against the common order -in -original dated 5.2.2001 vide which the Commissioner of Central Excise has confirmed the duty with penalty against the company, appellants No. 1, and imposed penalties on the other appellants as detained in the impugned order itself.

(2.) The appellants No. 1, M/s Globe Synthetics Ltd. (in short 'M/s GSL') is a company engaged in the manufacture of polyester yarn (texturised and drawn/twisted). They were served with a show cause notice dated 12.8.1997 alleging that they had manufactured polyester yarn during the period November 1994 to June 1995, weighing 497671.746 kgs from the POY, clandestinely received from the company, appellants No. 4 (in short 'M/s HPL') and removed the same clandestinely without entering in the statutory records, without issue of invoice and without discharging the duty liability. The penalty was also proposed to be imposed on appellants No. 2 and 3 being the Managing Director and Director (Incharge) respectively of the company, M/s GSL, who were responsible for the day -to -day affairs of the business of the company. Similarly, penalty on the company, appellant No, 4, was also proposed to be imposed for having been acquired/purchased the polyester yarn (Texturised and Drawn/Twisted) from the company, GSL during the abovesaid period with full knowledge that the same was not duty paid.

(3.) The appellants contested the correctness of the show cause notice. The company, GSL, denied the clandestine manufacture and removal of the polyester yarn during the period in dispute without the costs of invoice and without payment of duty. Similarly, the company, HPL, denied the receipt of the goods from the company, GSL, in a clandestine manner. The Commissioner, however, did not accept the version of the appellants and through the impugned order confirmed the duty alongwith penalty against the company, GSL and imposed penalties of various amounts on other appellants as detailed in the impugned order itself.