TMI Blog1992 (8) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Premier Electronics; duty of Rs. 1,17,536 and penalty of Rs. 29,000 on petitioners M/s. Universal Electronics; duty of Rs. 38,913 and penalty of Rs. 15,000 on petitioners M/s. Supreme Electronics and duty of Rs. 1,45,787 and penalty of Rs. 30,000 on petitioners Electro Controls. 3. Shri Chacko George, the learned counsel for the petitioners, submitted that duty has been levied for the period 31-5-1985 to 11-7-1986 by issue of a show cause notice dated 1-1-1987. The learned counsel by making elaborate submissions for a considerable length of time and by taking us through the show cause notice in detail and also the order of the adjudication and other details, mainly contended that in the show cause notice the thrust is that Shri Kocho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that duty on all other units is not leviable prima facie on the basis of the very allegation in the show cause notice. So far as duty liability of M/s. Premier Electronics is concerned, the learned counsel submitted that the unit also remains closed since May, 1989 and has no financial resources to pre-deposit any duty without being subjected to undue hardship. The learned counsel also urged that notice to a Managing Partner in law cannot be construed to be a notice against the firm particularly in the context of the general tenor of the allegations in the show cause notice. 4. Shri Jayaseelan, the learned DR, referred to para 80 of the show cause notice and contended that there is an averment in the show cause notice that the total cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ners/proprietors of the different units are relatives of C.T. Kochouseph, Managing Partner of Premier Electronics and the statements of some of the employees who indicated that Kochouseph seems to be controlling the affairs of all these units, there is no other evidence at all of any common funding or flowback of money arrangement between these units. In view of the various CEGAT decisions cited by the party in support of their case, I have no other alternative but to drop proceedings on this ground. We should like to note that in the absence of specific appeal by the Department against this finding, the Tribunal being a statutory appellate authority will not be able to go beyond that whatever may be the merits or demerits in the respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brands, M/s. Universal Electronics which manufactured Voltex and V-Guard brands and M/s. Electro Controls (two factories) which manufactured V-Kind and V-Guard brands and clearing the same through M/s. Prompt India during the period 31-5-1985 to 10-7-1986, the extent of which are shown in Annexure I to IV to this Show Cause Notice, by wilfully and deliberately suppressing the facts of his control, management, ownership and proprietary interest in all the above mentioned units but instead showing the ownership of these units as of somebody else for the purpose of wrongly and ineligibly availing of the exemption available to small scale units, by concealing his sales pattern by which he arranged to sell the goods manufactured in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cs, M/s. Universal Electronics and M/s. Electro Controls is to be clubbed together for the period upto 31-5-1985 and for the period from 31-5-1985 to 11-7-1986 not only their total clearance to be clubbed but the value is to be computed under Section 4(a)(iii) of the Central Excise Salt Act, 1944 taking the selling price of Prompt India to the dealers for working out the assessable value. Therefore, on careful consideration of the averments in the show cause notices on prima facie ground we are obliged to hold in the light of the allegations in the show cause notice, that the demand raised against M/s. Premier Electronics, a firm, of which Shri Kochouseph is the Managing Partner would be sustainable. In the absence of any allegation ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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