Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 1543 - AT - Central ExciseDuty demand - Clubbing of turnover of the Job workers - dispute regarding Valuation - dummy units or not - Invocation of extended period of limitation - Held that:- Prima facie the adjudicating authority in his findings held that eleven units are nothing but job workers of the appellants merely on the grounds that these were controlled by the appellants by way of supply of raw materials and arrange for supply of raw materials etc. We also find that there is no dispute on the fact that each of the unit are independently registered with the central excise and nowhere in the adjudication order it was brought out that they are inter related. Appellant's unit cleared match sticks after paying excise duty on sale to other units and they in turn manufacture final product under the brand name "Chavi" and discharged excise duty. If the department disputed the price at which excise duty paid by the eleven units the demand should have been made on the eleven units, who are already registered with the Department. Duty cannot be demanded on the appellants for trading of goods. Prima facie, we find there is contradictions in the allegations. It has not been clearly brought out in the order whether the appellants are the principal manufacturer and whether eleven units are only job workers. It is seen from the records that neither the appellants nor eleven units have opted any job work procedure. Whereas the adjudicating authority has defined them as job workers and availed duty on the price at which the match boxes are sold by the appellants, which is contrary to Rule 10A of Central Excise Valuation Rules. By relying the Tribunal order in the case of Diamond Cements Ltd. (2012 (6) TMI 73 - CESTAT, NEW DELHI) and other citations, we find that the appellants have made out a prima facie case for waiver of pre-deposit. - Stay granted.
|