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2018 (1) TMI 985 - AT - Central ExciseClandestine removal - Gutka - illegal factory premises - denial of opportunity of cross-examination - closure of factory - declaration of machinery - Held that: - one machine has been declared by Shri Mukesh Katheil in his registered premises, but the same has been intimated as closed in the month of July, 2008. During the course of search, three undeclared premises have been detected where 12 packing machines were found working and engaged in packing ‘Paheli’ brand gutka bearing the registration number of Shri Mukesh Katheil. In terms of the Packing Machine Rules, Central Excise duty is liable to be paid on the 12 packing machines - the issue for adjudication is whether the duty liability is to be borne by Shri Mukesh Katheil, proprietor of M/s Shree Swaroop Products. It stands fairly established that Shri Mukesh Katheil, proprietor of M/s Shree Swaroop Product has taken on rent four premises and making use of raw material prepared in the premises adjacent to the registered factory, sent the raw material-mix to the three unregistered premises. In the three premises, by installing 12 machines illegally, gutka has been packed and sold bearing the brand name Paheli. On the basis of the evidences produced by Revenue, the case is fairly established. It is settled proposition that in quasi judicial proceedings, the level of evidence required to be produced is to be such that the case is established to the extent of preponderance of probability. The standard of proof need not be as required in the case of judicial proceedings. In the facts and circumstances of the case, Shri Mukesh Katheil has carried out manufacture of gutka using 12 packing machines in illegal factories - demand upheld. Penalties of ₹ 10 lakhs each on various persons - Held that: - all the persons have played an important part in abetting the clandestine manufacture of gutka in the illegal factories. They were all employees of Shri Mukesh Katheil and have worked in various capacities and have facilitated the huge evasion of Central Excise duty. Consequently, they are liable for penalty under Rule 26 of the Central Excise Rules, 2002 - penalties upheld. Appeal dismissed.
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