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2015 (10) TMI 138 - AT - Central ExciseValuation - clubbing of clearance - proceedings were initiated against HPCEL on the ground that a portion of the clearance shown in the name HEC were actually cleared by them and HEC did not have manufacturing facility and it was only a trading firm - Revenue contends that the Commissioner (Appeals) failed to take note of the fact that the HEC has not incurred any expenditure on electricity and manpower and further, the Commissioner (Appeals) has simply ignored the statement of Shri Jayarama Reddy wherein he had agreed that HEC is only a trading firm - Held that:- Investigating officers did not visit the premises of HEC which would have finally settled the issues. When Shri Jayarama Reddy retracted his statement, the officers could have visited the premises which also was not done. The claim made by HPCEL that conveyance charges and labour charges mentioned in the Profit & Loss Accounts are actually related to electricity and manpower has not been verified and discussed. The original authority could have asked for details of persons employed and actual consumption of electricity and could have verified whether electricity consumption and manpower / employees were sufficient or not for the production shown by HEC. This also has not been done. The fact that there was another statement of one Shri Krishna Reddy who was Director of HPCEL who categorically stated that HEC was a separate unit, has not been discussed. - As regards the Sales Tax Assessment Order, it was simply observed that the sales tax officers did not visit HEC. Unfortunately, the same applies to the officers of Central Excise also who did not visit the unit and did not gather evidence to show that there is no machinery to manufacture the goods. There is a major defect which has been discussed by the Commissioner (Appeals) also. The defect is that no notice has been issued to HEC separately. - Decided against Revenue.
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