TMI Blog1986 (11) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... al Excise, Preventive Intelligence, Kalyan 1st Division paid a surprise visit to Factual Electronics (Private) Ltd. (appellant s firm) on 5-12-1978. On verification of the stock of electric motors in the Bonded Store Room and R.G.1 Register, they noticed that 6 electric motors bearing serial numbers (1) 770097, (2) 770010, (3) 780339, (4) 770012, (5) 780294 and (6) 780141 were actually found in the Bonded Store Room even though electric motors bearing same serial numbers had been cleared earlier under Central Excise Gate Passes. The assessee had, neither intimated the facts of receipt of duty-paid goods in the factory premises nor filed any D-3 declaration. The said motors were also not accounted for in the Form V-Register. The officers t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of the said factory. As a matter of fact, the seizure of 14 electric motors was not even intimated to the other Directors. It was only when the second seizure took place in 1979 in the factory as well as in the Head Office, the firm and the other Directors came to know of the misdeeds of Shri Rajwade. All the manipulations were made by Shri Rajwade. The penalty should have been levied on Shri Rajwade and not on the firm. The firm as well as the other Directors were innocent. Therefore, the penalty should not have been imposed on the firm. 5. Shri Pattekar for the Respondent Collector, however, submitted that the licensee is the firm. The activities of the firm are carried out by the Directors of the firm. If any of the Director commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of the Directors unless the Company is able to establish that the acts or omissions of the Directors was ultra vires of the Memorandum or Articles of Association. No such plea had been put forward by the appellant. The only contention raised before us was that Shri Rajwade, the Technical Director was all in all in so far as the manufacture, as well as maintenance of accounts is concerned and he committed the irregularities and the illegalities detected by the Central Excise Department. Therefore, the personal penalty should be only on Shri Rajwade and not on the firm. We are unable to accept Shri Jain s contention that the penalty cannot be levied on the firm for the acts and omissions of its Directors. The Central Excise Licence was i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... removes any excisable goods in contravention of any of the provisions of these rules, or (b) does not account for any excisable goods manufactured, produced or stored by him, or (c) engages in the manufacture, production or storage of any excisable goods without having applied for the licence required under Section 6 of the Act, or (d) contravenes any of the provisions of these rules with intent to evade payment of duty, then, all such goods shall be liable to confiscation and the manufacturer, producer or licensee of the warehouse, as the case may be, shall be liable to a penalty not exceeding three times the value of the excisable goods in respect of which any contravention of the nature referred to in clause (a) or clause (b) or c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
