9911796707
TMI Blog1999 (9) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... uits on job work basis for M/s. Parle Products Ltd. under an agreement. For quality control and coordination purposes an official of M/s. Parle Products Ltd. used to sit in the factory of M/s. Bunty Foods (I) Pvt. Ltd. On a visit to the premises of the job worker, a quantity of broken biscuits was noticed by the officers. The same was not found to have been entered in the RG1 register and was therefore seized. Later on statements of the people concerned with the two units were recorded. Shri Vinod Jashnani the director of M/s. Bunty Foods, stated that the broken or rejected biscuits were not accounted for in the statutory register nor had any classification declaration been filed in their regard. He stated that the statistics relating to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd for evading payment of duty allegation as to penalty was separately made against Vinod Jashnani as well as M/s. Parle Products. After hearing the noticees, the Commissioner of Central Excise, Mumbai-III passed the impugned order. In this order the Commissioner confirmed the duty, imposed equivalent penalty under Section 11AC of the Central Excise Act, 1944 and under rule 173Q of the Central Excise Rules, 1944 on Bunty Foods. He confiscated the used biscuits but permitted their redemption on payment of fine. He imposed a penalty of Rs. 3,00,000/- on Vinod Jashnani and of Rs. 2,00,000/- on Parle Products. He refrained from ordering confiscation of plant, building etc. Hence these appeals and the present applications. 3. Shri D.B. Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Vinod Jashnani of Bunty Foods as well as S.R. Agarwal of Parle Products that such broken biscuits were ground up and recycled. This claim is supported by a register which shows the production of broken biscuits and their consumption in recycling activities. This register was referred to in the statement of Jashnani made on the same day as the visit of the officers. The entire show cause notice proceeds on the assumption that this register was a proven document. The case of the appellants Bunty Foods that these broken biscuits were recycled is borne out by this register. 7. The logic that since Parle Products were clearing a quantity of broken biscuits and therefore such biscuits were cleared by Bunty Foods is therefore not support ..... X X X X Extracts X X X X X X X X Extracts X X X X
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