Per Archana Wadhwa :

Both the appeals are being disposed of by a common Order as they arise out of the same impugned Order of Commissioner of Central Excise, Patna vide which he has confirmed demand of Rs. 18,99,027.97 against M/s. Prabhat Zarda Factory (India) Ltd. under the provisions of Section 72 of the Finance Act, 1994 as Service Tax and has imposed penalties upon the said appellants. In addition, penalties have also been imposed on the second appellant, Mr. Pradeep Kumar Arya who is director of M/s. Prabhat Zarda Factory.

2. The appellants, M/s. Prabhat Zarda Factory, are engaged in the manufacture of tobacco product. The said appellants entered into an agreement dated 25.10.89 with M/s. Ratna Zarda Company (hereinafter referred to as RZC), appointing the said M/s. RZC as an agent of M/s. Prabhat Zarda Factory. As per the terms of the said agreement, M/s. RZC was appointed as agent for the purpose of marketing the appellants' product and for the function of booking of orders, managing, supervising and developing of the market. The said M/s. RZC was also to act as the appellants' attorney to demand, to sue, to recover, to receive and to give effectual receipts for all sums