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2017 (8) TMI 1444

was preparing pan Masala pouch as well as Jarda pouch bearing the Brand "Poorvai" which is corroborated from the computer records, hence the applicant is liable to be prosecuted for commission of offence under section 9 A and section 9AA of Central Excise Act 1944. - Held that:- It transpires that the applicant evaded the excise duty by procuring the raw material and also not accounting the clandestine and surreptitious production in the statutory books. The clandestinely manufactured goods were supplied in the market without cover of lawful documents. The applicant is the master mind and beneficiary of entire scheme of duty evasion. The applicant had knowingly and willingly made distance in order to create a veil and to escape legal liabilities cast upon him. According to section 9AA of Central Excise Act, every person who at the time, the offence was committed was in charge shall be severally and jointly liable for being prosecuted for the aforesaid offence. There is nothing in the Act that the prosecution depends upon the result of the adjudication. Two proceedings are quite independent. The finding in one is not conclusive in the other proceedings. Both can go on simultaneo .....

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djacent units, it emanated that some manufacturing activities of Pan Masala and Tobacco products were carrying on in the said premises. Search warrant was issued by the Additional Commissioner Central Excise commissionerate, NOIDA-II for search of the said premises in presence of two independent witnesses. After breaking open the lock of the said premises, six Pan Masala packing machines in unsealed condition, two other packing machine, one big sealing machine , one big weighing scale , one small weighing scale, a mixture tub and stock of raw materials were found inside the premises. Finished Pan Masala in the name and style of Poorvai in different packing of 05 grams MRP ₹ 4/- per pouch , 2 grams MRP ₹ 2/- per pouch and 100 grams containers MRP 170/- as well as Zarda scented tobacco of P-1 branch in packing of 0. 5 grams MRP ₹ 1/- per pouch and Zandra scented tobacco of Poorvai Zafrani Zarda container packing of 50 grams MRP ₹ 150/- per containing were found in the premises. The stock of raw material i. e. Beetal nut, Cardamum (Green Ilaichi) Black peeper, Clove , Catchu Powder, Lime Powder , Packing Material in the form of rolls, plastic pouches, HDPE bags .....

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or. From the record, it evinced that the said amount of currency could be the sale proceeds of the excisable goods manufactured and cleared by the Unit therefore, the officers seized the said currency amounting to ₹ 8. 87 lacs under the provisions of section 121 of Customs Act 1962. Various records relating to procurement of raw materials for the manufacture and preparation of pan masala were available in the Unit. During the course of search a register was found in respect of the attendance of the employees which included sweeper, guard, gardner and workers. After collecting the various materials, statement of Manoj Kumar Arora and his wife Smt. Sapna Arora incharge of M/s Poorvai Pan Maala Pvt. Ltd, . Plot No. 59 Ecotech-III, Greater NOIDA were recorded on 15. 3. 2017 . The statement of Smt. Sapna Aroa was recorded on 16. 3. 2017 before the Superintendent, Central Excise , NOIDA-II under section 14 of Central Excise Act 1944. Statement of a number of employees of the applicant were recorded . On the basis of clinching material, it emerged out that the said company was manufacturing pan masala in clandestine manner and the applicant and his wife had derived benefit out of th .....

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proceeds of the excisable goods manufactured and cleared by the unit. The applicant is suffering from serious ailment and his condition is deteriorating day by day . Though the complaint has been filed but cognizance has not been taken , the applicant is entitled to bail. The learned Sessions Judge has rejected the bail of the applicant totally on erroneous and unsubstantiated grounds. Mere conferment of powers of investigation into criminal offences under the Central Excise Act does not entitle the police personnel to arrest and keep in custody, thus the arrest of the applicant is patently illegal and he may be released on bail. The applicant undertakes to cooperate with the trial and will not misuse the liberty of bail. To bolster his submission, learned counsel for the applicant has placed reliance upon a gamut of decision of other High Court as well as Hon'ble Apex Court which are portrayed hereto below : 1. Radheshyam Kejriwal Versus State of West Bengal Laws (SC ) 2011, 265, 2. Rajesh Dayal Versus Union of India 2012, (284) ELT 164 (Raj). 3. Kishin S. Lounganj Vs. Union of India W. P. (Crl) No. 333 of 2015 (S) 4. Videocon Industries Ltd. Vs. State of Maharashtra (2016) 12 .....

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o has been allowed to compound once in respect of any of the offences under the provisions of clause (a), (b), (bb), (bbb), (bbbb) or (c) of sub-section (1) of section 9; (b) a person who has been accused of committing an offence under this Act which is also an offence under the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985); (c) a person who has been allowed to compound once in respect of any offence under this Chapter for goods of value exceeding rupees one crore; (d) a person who has been convicted by the court under this Act on or after the 30th day of December, 2005. The applicant was admittedly involved in manufacturing and selling of Pan Masala and Jarda scented tobacco. He evaded huge amount of duty without following the norms and procedures laid down hence he has rightly been prosecuted under the Excise Act. Since the duty evaded by the applicant is extensively high hence there is every likelihood that he will misuse the liberty of bail by extending threats and intimidation. From the rival submission of the learned counsel for the parties, it emerges out that M/s Poorvai Pan Masala Private Ltd. Plot No. 59 Udyhog Kendra-II Ecotech-III Greater NOIDA (U. P .....

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