JUDGMENT

R.L. Gulati, J. - The petitioner is a dealer in tobacco which is a commodity liable to Central Excise Duty under the Central Excise and Salt Act, 1944. He keeps a ware-house at Maunath Bhanjan in the district of Azamgarh. In this ware-house he stores tobacco.

2. On December 19, 1964 a party of the officers of the Excise Department, headed by the Deputy Superintendent of the Central Excise, Allahabad, carried out a surprise check of the petitioner's ware-house and found that between December 17 and December 19, 1964, the petitioner had removed from the ware-house 350 bags of biri tobacco without paying excise duty and in the same period had brought into the ware-house, in an unauthorised manner, 171 bags of biri tobacco which were found to be in excess of the stock shown in his books of accounts. The petitioner's statement was recorded at the spot wherein he admitted these irregularities. The excess stock was seized.,Later, on 8th of February, 1965 a notice was issued to the petitioner to show cause as to why excise duty should not be levied upon 350 bags of tobacco which were found short and why the stock found in excess should not be confiscated. The petitioner submitted a