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TMI Blog2009 (7) TMI 671X X X X Extracts X X X X X X X X Extracts X X X X ..... e of lift winding machines falling under Chapter 84 of the Central Excise Tariff Act, 1985 and were availing the benefit of value based exemption under the SSI exemption scheme. Their factory was visited by the officers on 6-6-2005 and it was noticed that castings of the lift winding machines were procured and subjected to machining process in the factory. The inputs, viz. Gear boxes, were sent to M/s. Cama Gears Manufacturing Co., 21, Dharnidhar Industrial Estate, Raikhal, Ahmedabad for the process of lapping. The same was received back after undertaking of process of lapping. The assembling of the machines was under taken in the factory premises of the appellant. The packing and dispatch of these machines were also made from the factory p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived from Varsha Industries for lapping process and the machines shown to have been cleared from their factory premises were in fact manufactured and cleared by M/s. Varsha Industries. 6. Statement of Shri D.P. Patel was subsequently recorded on 29-8-2008 accepting the above factual position. 7. On the above basis proceedings were initiated by way of issuance of show cause notice on 29-9-2008 which culminated into the order passed by the Assistant Commissioner confirming demand of duty of Rs. 1,85,327/- along with confirmation of interest and imposition of penalty of identical amount upon M/s. Varsha Industries. In addition he imposed penalty of Rs. 50,000/- on Shri D.P. Patel, Proprietor of Varsha Industries and penalty of Rs.50,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Patel was recorded almost after three years of initial visit of the officers i.e. on 29-8-2008, wherein he again accepted the fact of clearance of winding machines in the name of M/s. Cama Gears. No efforts have been made by the appellant to show that Cama Gears was in a position to manufacture the said winding machines so as to rebut the allegations made against them. The statements of the two proprietors are corroborative of each other as also of the facts recorded in the panchnama at the time of the visit of the officers. As such I am of the view that there is enough material on record to uphold the findings of the lower authorities. Accordingly, the demand of duty made against M/s. Varsha Industries is confirmed along with confirmatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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