2013 (3) TMI 231

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....t their individual liability cannot be ascertained. (ii) In this case, the basic fact that rebate of Rs.1,24,19,869/- was fraudulently availed by the said seven persons in the name of the said non-existent unit is admitted and established beyond doubt. Where the law itself provides that levy and collection of duty are two different concepts. The former i.e. levy arises at initial stage by virtue of the Provisions under Central Excise Act, whereas collection of duty arises at a subsequent state. Since the acts of defrauding the exchequers by the said seven persons are intermingled, a separate / proportionate liability of the said seven persons cannot be ascertained. In such situation, ordering collection of duty ( rebate fraudulently availe....

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....red recovery of rebate amount of Rs.1,24,19,869/-. He also ordered recovery of interest for such claim which he categorized as fraudulent. He also imposed penalty equivalent to the principal sum. Directions in this regard may be noted. "(3) I impose a penalty of Rs.1,24,19,869/- (Rs. One Crore, Twenty Four Lacs, Nineteen Thousands, Eight Hundreds and Sixty Nine Only) upon M/s. Deep Textiles (I) C-1/63, Kailash Nagar, Sargrampura, Surat or (ii) 1177, Ambaji Market, Ring Road, Surat under Section 11 AC of Central Excise Act, 1944. This amount shall be recovered from the said seven beneficiaries, namely Shri Mahesh Harlalka, Shri Rakesh Sharma, Shri Girdhari Dadhich, Shri Rasmi Patel, Shri Madan Jhanwar, Shri Ashok Jhanwar and Shri manohar Ma....