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2018 (3) TMI 620 - AT - Central ExciseClandestine manufacture and removal - aerated / soft drinks - SSI exemption - use of Brand names Bisleri Club Soda - use of brand name CITRA. Clandestine removal - demand of ₹ 9.61,561/- is based on the grounds that the figures of sales indicated in the Sales Manager Report (SMR) sent by the appellants to their franchisors was more than the clearances shown in RG 1 Register - Held that: - identical issue in the case of Moon Beverages [1999 (5) TMI 597 - CESTAT NEW DELHI], where it was held that Department has not been able to establish that the assessees have surreptitiously procured such raw materials for use in the manufacture of aerated waters. This, coupled with the fact that the assessees have further explained for the difference in quantity of concentrates purchased and quantity accounted for, renders the duty demand on account of suppression of production, unsustainable - demand in the present case also set aside. SSI exemption in respect of production of clearances of Bisleri Club Soda - Held that: - the ratio of the Hon’ble Apex Court judgment s in Sri Ganganagar Bottling Co. Ltd. [2007 (8) TMI 23 - SUPREME COURT OF INDIA], is very much applicable to the present case since the facts are pari materia. In the facts of Sri Ganganagar Bottling case the brand name owners were themselves not manufacturing CITRA aerated water and therefore was alleged that the franchisee who was in fact manufacturing the same would not be eligible for SSI exemption - demand not sustained. SSI exemption - LFFL, brand owners of CITRA - Held that: - when PBPL was not within the knowledge of the fact whether LFFL had crossed the aggregate value of clearances prescribed for SSI benefit and further, when the belief that the former had not, was strengthened by way of certificates issued by the Range Superintendents, even as on 12.4.1993, the benefit of SSI exemption cannot be denied to PBPL not only for the impugned period covered by N/N. 175/86-CE but also that covered by N/N. 1/93-CE - demand set aside. Appeal allowed - decided in favor of appellant.
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