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2015 (3) TMI 128 - AT - Central ExciseClubbing of clearances - Imposition of penalty - Seizure of goods - Held that:- impugned order has fully taken into accounts the facts like unity of control, financial flow back, absence of manufacturing facility at M/s. CPMPL, common employees and office, and rent-free space given to M/s. CPMPL and after a detailed discussion supported by judicial pronouncements has clearly established the sustainability of the allegation that clearances of two units are to be clubbed as M/s. CPMPL was merely a dummy unit of M/s. CE. The adjudicating authority also established on sustainable basis that the brand name ‘Chirag’ did not belong to the appellants but actually belonged to others who have been mentioned by name in the impugned order. Mr. Praveen Parashar s application to get the said brand name registered in his name had not been approved. That the brand name happens to be the same as the name of a son in the family does not make the brand name belong to them. As M/s. CPMPL is found to be a dummy unit, the seizure and subsequent confiscation is also clearly sustainable as has been brought out by the adjudicating authority. As regards penalty on Mr. Praveen Parasher, it is seen that he is the proprietor of M/s. CE and therefore, as penalty on M/s. CE has been imposed, separate penalty on Mr. Praveen Parasher is not warranted. But in the present case, Mr. Praveen Parasher was the main person and was the master mind behind the whole modus operandi (beyond his role as proprietor) as has been clearly brought out in the impugned order. Therefore penalty on him is not only attracted but also warranted. Ms. Hemlata Parasher as Director of Mr. CPMPL knowingly participated in the entire modus operandi and she as Director allowed M/s. CPMPL to knowingly and willingly provide cover by pretending to be a SSI manufacturer though they did not have any infrastructure for doing so. So liability of Ms. Hemlate Parasher to penalty is not questionable. Adjudicating authority should have dealt with the appellants contention that the value of the traded goods and the goods exported are not includible for the purpose of computation of the impugned demand. Therefore, with the consent of the ld. AR, we waive the pre-deposit, set aside the impugned order and remand the case for de novo adjudication only for the limited purpose that the appellants contention that the value of the traded goods and the goods exported needs to be excluded for the purpose of computing the impinged demand should be considered with a view to (re) computing the demand and also penalties to the extent they (i.e. penalties) get impugned upon by the (re) computation of s demand. - Decided partly in favour of assessee.
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