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2010 (7) TMI 428 - CESTAT, AHMEDABADDuty liability – clandestine removal and manufacture - textile processing unit - The plea that the factory was leased out to Shri Jariwala who was running the same was never taken by the appellant either before the Original Adjudicating Authority or before Commissioner (Appeals). In any case we find that central excise licence or registration continued to be with M/s. Varun Silk Mills Pvt. Ltd. As such for all intents and purposes M/s. Varun Silk Mills Pvt. Ltd. continued to be the central excise assessee and manufacturer of the goods. Any internal arrangement between Varan and Shri Jariwala, without intimation to the Revenue and without getting the licence cancelled by M/s. Varun Silk Mills Pvt. Ltd. and reissued in the name of Shri Jariwala, M/s. Varun Silk Mills Pvt. Ltd. would remain the manufacturer and hence the central excise assessee. It is not the actual physical manufacturer of the goods which is relevant for the purposes of payment of duty. Inasmuch as Varun continued to remain the central excise licence holder, the goods manufactured in their factory premises are required to be treated as having been manufactured by them irrespective of the internal arrangement between Varun and Jariwala. – Demand and penalty sustainable
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