Per J.H. Joglekar :

The appellant processed grey fabrics received from traders on job work basis. On 05/01/1989 a vehicle containing goods cleared from the premises was intercepted and was brought back to the factory. Discrepancies were noted in the original and other copies of the gate passes covering the consignment. Examination of gate passes under which goods had earlier been removed showed that while the first copy was fully completed the other copies were left blank. The fabrics totally valued at Rs. 4,04,124/- were seized along with the tempo. The Excise Clerk admitted that the modus of leaving the other copy blank was to enable evasion of duty and that it was done at the instance of Champalal Chopra, Director.

2. Investigations showed number of discrepancies in the lot registers which the Excise Clerk admitted were done deliberately under the instructions of Champalal Chopra. Chopra in his statement dated 09/01/1989 accepted the large-scale variations, erasions and scoring out in a number of registers and attempt to preparing fake invoices and gate passes and also offered to pay the duty leviable thereon. Thereafter officers contacted the octroi naka which kept detailed