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2009 (8) TMI 522 - AT - Central ExciseSSI Exemption- Notification No. 7/97-C.E., dated 1-3-97- M/s. Shree Rubber Works are engaged in manufacture of Latex Rubber Thread, falling under Chapter 40 of the Schedule to CETA, 1985. During the relevant period, they were working under small scale exemption Notification No. 7/97-C.E., dated 1-3-97. , proceedings were initiated against appellant, alleging that the goods shown to have been cleared from the factory of M/s. Shree Ambica Rubber Co., were in fact, manufactured at M/s. Shree Rubber Works and cleared from there. Such clearances were shown in the name of two companies only to avail the benefit of small scale exemption notification. The goods were actually being manufactured in M/s. Shree Rubber Works out of the raw material purchased in the name of M/s. Shree Ambica Rubber Works. Accordingly, show cause notice proposing to confirm the demand on the above allegations for the period 1995-96, 1996-97 and 1997-98 and to impose penalty upon various noticees was issued. An order passed by the Additional Commissioner vide which he has confirmed the demand of duty along with imposition of penalty. Appeal against the above order did not succeed before Commissioner (Appeals).Held that- Admittedly, at the time of visit of the officers in the factory of M/s. Shree Ambica Rubber Co., no manufacturing activity was witnessed and the machinery installed therein was found to be in dis-mantled condition. Electricity connection was found to be disconnected and electric consumption as revealed by the Electricity department was found to be Nil. The cumulative effect of all the above evidences is that the goods were never manufactured in the factory of M/s. Shree Ambica Rubber Works during the relevant period. If the goods were not manufactured therein, the same could not have been cleared under the bills and invoices of the said company. As such, all the goods cleared under the name of the said company are actually manufactured in the factory of M/s. Shree Rubber Works.We find that there is enough evidence to uphold the findings against the appellant. We, accordingly, find no justification to interfere in the orders passed by the authorities below confirming demand and imposing penalty upon all the appellants. As a result, the appeals are rejected.
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