V. MADHU @ CV MAATHESH, Vs. CCE

JUDGEMENT

(1.) By these early hearing petitions, the petitioners have prayed for early hearing of the stay petitions. After hearing both the sides, we allow their prayer and take up the stay petitions for hearing.

(2.) These stay applications have been filed by the above mentioned applicants/appellants seeking waiver of pre -deposit of duty demanded and penalty imposed in terms of the Order in Original No. 06/2004 (Commr) dated : 3.2.2004 passed by the Commissioner of Central Excise, Coimbatore. The order portion of the adjudication order confirming duty and imposing penalty etc. are extracted hereunder:

(3.) Brief facts of the case are that the officers of Preventive Group, Pollachi Division intercepted one vehicle TAS 6777 carrying 50 bags of cotton yarn on cones without proper transport documents evidencing payment of duty on cones and the bags were serially numbered from 1 to 50. The bags containing the goods viz. cotton valued at Rs. 2,08,800/ - and also the vehicle valued at Rs. 2 lakhs were seized for further action on a reasonable belief that the goods were removed/transported without payment of Duty in contravention of the provisions of the Central Excise Act, 1944, the act for short, and the rules made there under. The officers thereafter interrogated one Shri V. Madhu, Technical Advisor of M/s. Selvaganapathy Textiles and statement was obtained from him on 3.2.2000 and on various other dates. Further investigation was also taken up and as a follow up action statements were recorded from various persons such as V. Madhu alias CV Maathesh of Komalagoure Textiles M/s. Selvaganapathy Textiles, P. Dinesh of M/s. Sree Vignesh Textiles under Section 14 of the Act and also from various other persons including one C. Devaraj. It was in these circumstances that proceedings were initiated against the appellants by issue of show cause notice dated 25.7.2000 on an allegation that M/s CV Maathesh Proprietor of M/s. Komalagoure Textiles, and M/s. Selvaganapathy Textiles, lessee of M/s. Komalagoure Textiles had contravened the provisions of Rule 9(1), 52A, 53 and 173B, 173C, 173G, 173F and 174 of the CE Rules, 1944 inasmuch as they had wilfully suppressed the consumption of electricity, purchase and consumption of cotton, suppressed the production, clandestinely removed the goods and floated fictitious concerns for issuing invoices, and evaded payment of Central Excise duty and the show cause notice culminated in the order of adjudication passed by the adjudicating authority, demanding duty and imposing penalty as detailed above.