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Issues involved: Confiscation of ball bearings, penalty under Rule 209A, liability of individuals and corporations.
Confiscation of ball bearings: A consignment of ball bearings was seized from a mini-truck in the premise of M/s. Indian Roadways. The transport documents described the contents as 'Oil Engine Parts of Machinery Parts' and one box was described as Hurrien Lantaru Parts, Jewellers Screw Drawer set was found. The alleged manufacturers did not come forward to claim the bearings. The bearings were ordered to be confiscated as excisable goods due to the roles of Shri Shah and M/s. Indian Roadways Corporation Ltd. in the matter. Penalty under Rule 209A - Shri Shah: The lower authorities found that Shri Shah, the Manager of M/s. Indian Roadways, knowingly dealt with the ball bearings seized and confiscated as non-duty paid. The penalty of Rs. 30 thousand on Shri Shah was upheld due to his role in the incident. Liability of Transport Corporation: It was established that a Corporation, like M/s. Indian Roadways Corporation Ltd., has no mind of its own and cannot knowingly deal with goods liable for confiscation under the Central Excise Act, 1944. As the ball bearings were found in the routine course of business and their employee acted beyond the scope of employment, the Corporation cannot be held vicariously liable. Therefore, the penalty under Rule 209A against the Corporation was set aside. Judgment: The appeal of Shri Shah was rejected, upholding the penalty imposed on him. However, the appeal of M/s. Indian Roadways Corporation Ltd. was allowed, as the Corporation was not held liable for the confiscated ball bearings.
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