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Breach of Rule 52-A of the Central Excise Rules Prosecution for excise duty irregularities Applicability of Section 9(1)(bb) of the Central Excise Act Breach of Rule 52-A of the Central Excise Rules: The case involved M/s. Danfoss (India) Ltd., a manufacturer of Air Conditioning Machinery, and their Material Manager. The Assistant Collector found discrepancies in gate pass records, leading to a breach of Rule 52-A of the Central Excise Rules. The prosecution alleged non-compliance with gate pass requirements, but the evidence did not conclusively prove any offense under the Act or Rules. The Magistrate acquitted the respondents, acknowledging minor irregularities but found no clear violation of Rule 52-A. Prosecution for excise duty irregularities: The prosecution presented witnesses and evidence to establish excise duty irregularities, specifically regarding the Personal Ledger Account (P.L.A.) entries for certain gate passes. While it was confirmed that the gate pass numbers were not debited in the P.L.A., there was no evidence of excise duty evasion. The court noted that excise duty had been paid on the goods, emphasizing that the discrepancies were minor irregularities rather than deliberate evasion. Applicability of Section 9(1)(bb) of the Central Excise Act: The judgment highlighted the insertion of sub-clause (bb) in Section 9(1) of the Central Excise Act, effective from September 1, 1973. As the alleged breach of Rule 52-A occurred in April 1973, the court concluded that the respondents could not be penalized under Section 9(1)(bb) for the rule violation. The absence of concrete evidence linking the irregularities to excise duty evasion further weakened the prosecution's case. In conclusion, the court dismissed the appeal against the acquittal of the respondents, emphasizing the lack of substantial evidence to prove significant breaches of the Central Excise Rules or excise duty evasion. The judgment underscored the importance of differentiating between minor irregularities and deliberate offenses, ultimately upholding the Magistrate's decision to acquit the respondents after issuing a warning for the identified discrepancies.
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