9911796707
TMI Blog1998 (3) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... eport revealed that the appellants were getting unsecured loans from the principal manufacturers. On recording the statements of concerned persons, show cause notice dated 9-5-1991 was issued alleging that the appellants were hired labourers for M/s. Citurgia Bio-Chemicals Ltd., that M/s. Citurgia Bio-Chemicals Ltd. were the owners of the raw materials as well as finished goods, that the transaction between them were not on principal to principal basis and therefore, the benefit of Notification No. 175/86-C.E. was wrongly taken by the appellants. The show cause notice also invoked the proviso to Section 11A on the ground that the fact that the appellants were hired labour was suppressed with intention to evade payment of duty. The demand fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Citurgia Bio-Chemicals on the manufacturing activities of M/s. Citroflex. There is certainly a financial interest between M/s Citurgia Bio-Chemicals and M/s Citroflex Pvt. Ltd., in as much as the later have been taking unsecured loans ranging from Rs. 17 lakhs to Rs. 22 lakhs from M/s. Citurgia Bio-Chemicals Ltd. which clearly proves that there was financial interest between the two units." 4. The learned Chartered Accountant claimed that apart from M/s Citurgia Bio-Chemicals, the appellants had also secured loans from other corporate persons such as Gujarat State Financial Corporation and other financial institutions. He relied upon substantial case law to show that mere financial accommodation between the two units does not suggest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , working the sheets in the machinery, to produce and turn out cans. Such a man is a man who hires labour to manufacture cans and so engages himself in their manufacture. He is directly and visibly involved in the process of manufacture, in the act of forming and manipulating and fabricating cans from sheets either manually or with the aid of machinery. That person may manufacture the cans for himself or for another, but he engages in their production on his own account. But because he undertakes to make cans for another customer for a consideration, he cannot be said to have hired himself out to other persons for the manufacture of cans or that the customer engages in the manufacture of cans. The difficulty in the interpretation given by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
