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2019 (7) TMI 1171 - AT - Central ExciseClandestine removal - appellant had manufactured and cleared the impugned goods in the name of M/s. Nikita Plast, Daman without depositing the duty amount to the Government but instead deposited to the bank account of M/s. Nikita Plast - Freezing of accounts - HELD THAT:- As far as the submission of the learned counsel appearing for the Fancy Bag Industries and Manoj Mehta, the only defense of Manoj Mehta is that he was the Manager of Fancy Bag Industries which is a proprietary concern and in the show-cause notice proposal is made to recover the duty from him whereas the demand has been confirmed against the proprietorship concern which is not tenable in law. This argument of the learned counsel is not tenable in view of reply of Manoj Mehta to the show-cause notice wherein he has admitted that he is in-charge of Fancy Bag Industries which is a proprietorship concern and is also looking after the day-to-day affairs. The entire illegal activity has been done by Manoj Mehta without the knowledge of Nikita Plast. In the absence of any evidence to prove the role of the appellant, Nikita Plast, freezing of the account and adjusting the amount therein towards the duty liability is wholly unjust, illegal and improper and therefore I order for defreezing of the account of the Nikita Plast and also hold that the appropriation from the said account is without any authority of law - the order of demand against the Fancy Bag Industries and also the imposition of penalty on Manoj Mehta is upheld - the penalty imposed on Nikita Plast under Rule 26 of Central Excise Rules, 2002 and also order for defreezing of the account of Nikita Plast with immediate effect is dropped. Appeal allowed in part.
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