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2015 (9) TMI 462 - AT - Central ExciseDummy unit - allegation of evasion of duty on manufacture of cigarettes - The Department’s allegation is that PTPL, Nasik was nothing but a dummy entity or a front company floated by GTC for the purpose of duty evasion, that it is GTC who were fully controlling the activities of PTPL and that during the period of dispute, PTPL had received huge quantity of cigarette tobacco and other raw materials through GTC, which were used in manufacture of unaccounted cigarettes which were cleared clandestinely. Held that:- When the allegation of the Department is that PTPL is a dummy company or front company floated by GTC Ltd. which was being fully controlled by GTC and accordingly it is the GTC which has to be treated as the actual manufacturer, a specific finding in this regard has to be made and once such a finding is given, the demand would have to be confirmed against M/s GTC not against PTPL. If, however, there is no evidence to prove that PTPL is a front company or a dummy company floated by M/s GTC Ltd. but still there is sufficient evidence to prove the allegation of duty evasion against PTPL, the demand would have to be confirmed against PTPL and not GTC Industries Ltd. The matter has not been adjudicated in this manner and, therefore, for this reason the impugned order has to be set aside and the matter has to be remanded for de novo adjudication. - Matter remanded back.
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