2019 (1) TMI 177

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....R.K. Chowdhury with Mr. T.K. Mitra, Advs. For the Respondents : Mr. Somnath Ganguly with Mr. Bhaskar Prasad Banerjee & Mr. Parashar Baidya, Advs. ORDER Three writ petitions are taken up for analogous hearing as they involve the same order in original. The three writ petitioners are individuals who feel aggrieved by the imposition of penalty made in the order in original. The order in orig....

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.... raised by the petitioners. It proceeds to impose a penalty which it cannot do. He submits, once an entity is found to be a trader, such entity cannot be made a manufacturer for the purposes of the Central Excise Act, 1944. Since the petitioners are persons who are sought to be proceeded against in respect of transactions where the provisions of the Act of 1944 are not attracted, the proceedings a....

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....erein with regard to jurisdiction under the Act of 1944 and its applicability was considered in V.K. Udyog Ltd. (supra) and was negatived. As on date, there is no appeal pending against M/s. V.K. Udyog Ltd. (supra). As noted above, the three petitioners before me are the persons connected with the affairs of the legal entity viz. V.K. Udyog Ltd. The department had issued a show cause notice ....

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.... of the impugned show cause notice deals with the involvement of the petitioners in the entire transaction. Such allegations stand substantiated in the adjudication proceedings. The impugned order in original proceeds on the basis that, the three petitioners before the Court as Managing Director, Director and Manager of M/s. V.K. Udyog Ltd. were involved in the fraudulent transactions. Therefore, ....