BEHARI RAM Vs. EMPEROR

JUDGEMENT

(1.) The petitioner, Behari Ram and Gursaran Ram, owners of a sugar factory at Pachauri in Bihar, have been convicted under Section 8, Sugar Excise Duty Act 14 of 1934 and also under Art. 8 of the Sugar Excise Duty Order of the same year and sentenced to pay fines aggregating to the total sum of Rs. 1000 under the following circumstances:

(2.) On 9 January 1937, the one Inspector visited the premises of the petitioners at Pachauri and found 26 persons working while sugar was being manufactured with the aid of power, but the attendance register showed that only 18 persons were employed, 16 of whom were shown in attendance; he also found that no daily account was kept as required by Art. 4 of the Sugar Excise Duty Order. As a result of what he saw and ascertained, the Cane Inspector was satisfied that the petitioners were trying to evade payment of sugar duty and were also not maintaining correct accounts.

(3.) He accordingly submitted a report to this effect on 15 January 1937. On 29 January 1937, the Superintendent of Excise in turn submitted his report to the Collector recommending that a joint assessment may be made upon the petitioners and some other partners to pay as duty a sum of Rs. 300 for the months of December a January, and a sum of Rs. 300 as penalty for all the irregularities discovered, viz. failure to keep accounts and to submit monthly returns.