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TMI Blog2015 (6) TMI 371X X X X Extracts X X X X X X X X Extracts X X X X ..... ether the Hon'ble CESTAT has erred in not confirming the demand of Central Excise duty along with interest and imposition of penalties (as determined in Order-in-Original No. 12/ADC/ADJ/ 2005, dated 7-11-2005) for the period in question when the party has made a confessional statement for clandestine removal of the excisable goods which was sole basis of conviction along with the corroborative evidences as held by the Hon'ble Supreme Court in the case of K.I. Pavunny v. Assistant Collector [1997 (90) E.L.T. 241 (S.C.)] that the voluntarily confessional statement of accused can form the sole basis for conviction as detailed in para-32 of the said judgment of the Hon'ble Supreme Court; (ii) Whether the Hon'ble CESTAT has er ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee, its partners and dealers were searched by the officers of the Department on 20 January 2003. The search was conducted in the presence of one of the partners of the assessee. During the search, unaccountable cash collectively amounting to Rs. 19,43,000/- was seized from the factory as well as residential premises of the partners of the assessee, namely, Sri Davi Sarin and Sri Anil Sarin. The search operation was also carried out at the premises of two dealers of the assessee, namely, M/s. Basudeo Prasad & Sons (Tobacconist) at Shyam Market, Johri Bazar, Agra and M/s. Jain General Stores, near Jama Masjid, Bharatpur (Rajasthan) on the same date. The search resulted in the recovery of several bags of Gold Mohar brand Zarda (Gutkha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reed that total quantity of Cut Supari shown as issued for manufacture of excisable goods is wholly converted into final finished goods i.e. Gutkha/Pan Masala. There will be no loss/wastage during packing also. They further accepted the difference in quantity of Pan Masala and Gutkha manufactured in the factory and shown in the records and could not explain the difference/shortage. They also admitted to suppression of production of Pan Masala and Gutkha. Further, they also deposited Rs. 25 Lacks voluntarily as pre-deposit of Central Excise involved on such quantity of Pan Masala/Gutkha which was not entered in their records. The Deptt. has also established the fact that the party had installed capacity to manufacture the goods as alleged. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 121 of the Customs Act, 1962; (iii) confirm the demand of Rs. 1,81,006/- under Section 11A of the Act; (iv) confirm the demands of Rs. 1,71,149/- and Rs. 32,88,080/- under Section 11A of the Act; and (v) confirm the demand of Rs. 4,92,525/- as duty on goods seized at the premises of M/s. Basudeo Prasad & Sons. 7. Apart from the aforesaid confirmation of demands, the Adjudicating Officer imposed the following penalties : "(7) I impose a penalty of Rs. 39,61,611/- (Rupees Thirty Nine Lakhs Sixty One Thousand Six Hundred Eleven only) on the party under Section 11AC of Central Excise Act, 1944 read with erstwhile Rule 173Q of Central Excise Rules, 1944, Rule 25 of Central Excise (No. 2) Rule, 2001 and Rule 25 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posed upon the partners namely, the appellants have contended in their grounds of appeal that no separate penalty should have been imposed upon the partners when the partnership firm was being penalized for the same offence. In this regard, I tend to agree with this argument as the issue is by now settled by catena of pronouncements delivered by Higher Courts that no separate penalties are imposable for same offence on partnership firm as well as partners. Accordingly, I set aside the penalties imposed upon Shri Anil Sarin and Shri Davi Sarin. Regarding penalty imposed upon Shri Deepak Mehra, Authorized signatory, I observe that the Adjudicating Authority has already taken a lenient view and has imposed a nominal penalty of Rs. 10,000/- upo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w : "A. I have seen this raw material register & signed in the same on today date it is the same register which is resumed from my factory on 20-1-03, yet there is a difference in Qty. of Sada Pan Masala & Gutkha actually mfd. in the factory & shown in our records but I cannot explain the difference & I have no reply for this shortage. Q. 9. Are you excepting that you have suppressed the production of Pan Masala & Gutkha as described in Q. No. 8? A. Yes, there is a suppression but I cannot explain the same. Q. 11. Are you prepared to deposit Central Excise duty on the Qty. of Sada Pan Masala & Gutkha not accounted for in your statutory records as discuss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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