2009 (2) TMI 573 - AT - Central Excise

Summary

Issues: Duty confirmation, Penalty imposition based on alleged misrepresentation of manufacturing entity, Lack of evidence supporting independent manufacturing unit status of the entity.

Duty Confirmation and Penalty Imposition:
The judgment revolves around the duty confirmation against the appellant and the penalty imposed due to allegations of misrepresentation regarding the manufacturing of Wire drawing machinery. The appellant was accused of showing the machinery as manufactured by another entity, M/s. Swastik Industries, while it was allegedly produced by M/s. Heena Machinery Manufacturers, a partnership firm sharing a common partner with M/s. Swastik Industries. The Revenue's case rested on a partner's statement during investigations, admitting that M/s. Swastik Industries lacked the necessary machinery for manufacturing and that clearances under its name were actually from M/s. Heena Machinery Manufacturers to stay within exemption limits. Additionally, the supplier of the machines confirmed that the invoice to M/s. Swastik Industries was incorrect due to a clerical error.

Lack of Evidence Supporting Independent Manufacturing Unit Status:
Furthermore, the judgment highlights the appellant's failure to provide evidence, both during investigations and before the Original Adjudicating Authority, to establish M/s. Swastik Industries as an independent manufacturing unit with complete machinery. The statements of the partners, which were not retracted in time, and the supplier's confirmation that no machines were supplied to M/s. Swastik Industries, coupled with the absence of supporting evidence, led to the conclusion that M/s. Swastik Industries was not a full-fledged independent manufacturing entity. Consequently, the findings of the lower authorities were deemed valid, and the appeal was rejected, upholding the impugned orders.