2015 (1) TMI 540

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....a clandestinely removed without payment of duty by M/s K.P. Pouches Pvt. Ltd. During investigation, it was found that M/s Supreme Road Transport (P) Ltd. were actively engaged in transporting the impugned Gutkha bearing brand names Rajshree and Safal to Raipur fully knowing that the same was liable to confiscation. Vide the aforesaid order-in-original, besides confirming a demand of Rs. 12,73,70,477/- and imposing mandatory penalty of equal amount on M/s K.P. Pouches, a penalty of Rs. 1,00,00,000/- was also imposed on the appellant among others. Appeals against the said order-in-original along with stay applications were filed before CESTAT by M/s K.P. Pouches Pvt. Ltd., Shri R.P. Tripathi, Director M/s K.P. Pouches, Shri Rajinder Gaur, Dir....

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....of Section 35F which provides for the condition of pre-deposit as a pre-condition of hearing of appeal. Accordingly, these appeals cannot be heard. 4. Appeals are accordingly dismissed. 3. The appellant along with others on which/whom penalties had been imposed approached the Hon'ble High Court against the CESTAT order dated 3.4.2012. The Hon'ble High Court in para 6 of its order dated 21.9.2012 held as under :-        6 Tribunal had to necessarily go into facts of each appellants case and all relevant questions, such as the existence or otherwise of a prima facie case, the balance of convenience and irreparable hardship, if any, and indicate with clarity the amount they were required to deposit for th....

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....destine removal involving evasion of crores of Rupees of duty and therefore the appellant as a Director cannot escape responsibility as such clandestine activity could not have taken place without his knowledge and approval. 6. We have considered the facts and submissions. It is on record that K/s K.P. Pouches were found to have indulged in clandestine removal of Gutkha evading Central Excise duty of more than Rs. 10 crores. It is not denied that marking Rajshree and Safal were found on the bags kept in the godown at Raipur. Prima facie, clandestine removals of such magnitude from this kind of factory could not have happened without the knowledge and approval of its two Directors. While any pre-deposit ordered will feel like causing some....