- (1.) This rule is directed against an order imposing a penalty of Rs. 250/- on the petitioner firm under the provisions of Rule 9 of the Central Excise Rules, 1944 , and also imposing excise duty on 77621 Kgms. of Vegetable Non-Essential Oil (in this case mustard oil ), said to have been surreptitiously removed form the mill of the petitioner firm.
(2.) The circumstances under which the aforesaid order came to be made are hereinafter stated in brief. The mill of the petitioner firm is situated at premises No. 121, Raja Dinendra Street, in the town of Calcutta. The Divisional Preventive Intelligence Staff of the Central Excise Department, received information that the firm was not maintaining correct accounts of production of oil in the mill and was guilty of surreptitious removal of dutiable oil, without payment of duty . Relying on the information received, they took out a Search warrant from a Police Magistrate at Sealdah and searched the premises of the mill, on September, 6, 1961. In course of search they recovered the following documents : (1) two Press Books, (2) One Bill Book, (3) one Wage Register and (4) One Transport Register. A Seizure list (described as Panchnama in the understandable and unorthodox language of the Department) was prepared in the presence of witnesses.
(3.) Of the two Press Books seized, one was seized from the g addi of the mill and the other was recovered from a box in the mill premises, which was under lock and key. The book, that was found in the g addi , contained 318 pages and was in conformity with the provisions of the prescribed register, namely, R.G. I. In this book, it is contended, lower rare of production from the Ghanis was entered. The other book, namely, the one recovered from a box under lock and key, contained 314 pages and presented an altogether different picture of production. In this book entries for rotation of Ghanis were shown as round the clock and there was also stated therein the names of the Ghanimen employed. There were also entries as to overall day-to-day production made in the said book. This press book revealed that the mill had crushed 25329 Mds. and 30 Srs. of mustard oil seeds, during the period April 20, 1961 to September 5, 1961, and obtained therefrom 3,25,266 Kg. of mustard oil. As against the above quantum of oil produced, the Press Book, which was found in the Gaddi of the Petitioner firm, showed that the mill had produced only 2,47,645 Kgs. of mustard oil during the said period. Thus, the second Press Book, recovered from under lock and key, showed excess production to the extent of 77,620 Kgs. during the period April 20,1961 to September 5, 1961. In the mill premises the excess production was not found, leading to the inference that the said excess production must have been removed from the mill without payment of duty.;