ORDER
T. Anjaneyulu, Member (J)
1. The appellants herein have assailed the impugned order passed by the Commissioner of Central Excise Ahmedabad wherein they were imposed penalties viz Ashokbhai Jessaram Khatani Rs. 6,00,000/- Milind Sureshbai Shah Rs. 50,00,000, /- and Bhagwandas Jailal Fagnani Rs. 40,000.
2. Shri Ashokbhai Jessaram Khatnani is the sole proprietor of a firm functioning in the name and style of M/s Roopam Textiles, which is inter alia engaged in the business of getting grey fabrics processed through a job worker functioning in the name of M/s. Mini Textiles. The entire billing and documents were prepared in the name of Ashokbhai and not in the name of Ashokbhai and not in the name of M/s. Roopam Textiles and he has been making payments to M/s. Roopam Textiles for the job work done where as M/s Mini Textile was also getting grey fabrics for the purpose of process from one Shri Ashokbhai Sindhi as well as Shri Ashokbhai Sadiwala and the appellant. On the basis of an intellegence that M/s Mini Textiles are evading Central Excise duty on large scale by suppression of actual production and clandestine removal of processed fabrics, the officers of Central Excise, Ahmedabad visited the factory premises on 19.8.97 and carried out a search. During the verification of physical stock in the factory, It was found that 9940 lm of MMF valued at Rs. 1,39,160 involving Central Excise duty of Rs. 27,832 were lying unaccounted in fully packed and ready-to despatch condition. Shri Sureshbhai Ramniklal Shah, Proprietor of the said assessee, has admitted the same.
3. The show cause notice was issued to various persons including Shri Ashokbhai Jessaram Khatnani alleging that he had dealt with excisable goods and liable to penalty 209A of Central Excise rules.
On adjudication of the matter sum of Rs. 6 lakhs was imposed towards penalty on this appellant Mr Milind Sureshbhai Shah, son of the said Sureshbhai Shah who was regularly sitting in the said factory premises and supervised the entire production, sales etc and also appears to be concerned in and dealt with the entire quantity of excisable fabrics surreptitiously processed and cleared by the said factory, which he knew and had reasons to believe were liable for confiscation under the Central Excise Law, and thereby rendered himself liable for penalty under provisions of Rule 209A and on adjudication of the matter sum of Rs. 5o lakhs were imposed towards penalty on this appellant. The 3rd their appellant is Mr Bhagwandas Jailal Fagnani. He had purchased some readymade fabrics from M/s S.R. Textile he had not received Central Excise invoice and the goods were received under the cover of private slips. On adjudication of the matter sum of Rs. 40,000/- was imposed towards penalty.
4. The adjudicating authority has mentioned the role played by each of the appellants in the impugned order and accordingly penalised them Ashokbhai Jessaram Khatani and Shri Bhagwandas Jailal Fagnani do not dispute the confirmation of the duty demand and confiscation of the goods except the imposition of penalty. Having considered the facts and circumstance of the case and further having found the penalty is on high side the same is reduced to Rs. 2 lakhs out of Rs. 6 lakhs and Rs. 10,000 out of Rs. 40,000/-on Bhagwandas Jailal Fagnani and Mr. M.B. Shah respectively. The third appellant did not appear before us. Therefore we find no merits in his appeal. Accordingly the appeal of Shri M.B. Shah is dismissed both on merits and non prosecution.
(Pronounced in Court)