2004 (3) TMI 483

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..... [Order]. - The brief facts of the case are that M/s. Varsha Engineers are the manufacturers of distribution transformers. Adjacent to their factory, premises of M/s. Jaimini Industries are located. During the visit to the premises of M/s. Jaimini Industries, Central Excise Officers found 24 distribution transformers of different rating/capacity. The said transformers were seized. The said transf .....

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..... Varsha Engineers asking them to show cause as to why these transformers should not be confiscated under Rule 173Q(1) of the Central Excise Rules, 1944, and why penalty should not be imposed on both under Rule 173Q(1)(d) and Rule 209A why the land, building, etc., should not be confiscated. 2. The Assistant Collector confiscated twenty-four transformers and permitted M/s. Jaimini Industries t .....

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..... ies. M/s. Jaimini Industries do not manufacture the transformers. They are engaged in the manufacture of paper coated wires. The show cause notice nowhere indicated the exact provisions of Central Excise Rules which have been violated by M/s. Jaimini Industries in the process of stocking of transformers in their factory on behalf of M/s. Varsha Engineers. In the show cause notice it is also an adm .....

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..... ses. Therefore, their appeal has to be allowed. 7. So far as M/s. Jaimini Industries is concerned, I cannot see any contravention on their part. The restriction for re-entry applies only to those goods, which the manufacturer is manufacturing. In this case, M/s. Jaimini Industries are manufacturing wires and not the transformers. In fact the manufacturer may require materials of various kind .....

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..... 9/92, dated 23-12-93 where it is clarified that the restrictions applies solely to goods manufactured by an assessee or similar goods manufactured by other manufacturers and part thereof and goods in which trading activities being undertaken. 9. In the light of the discussions above, I allow the appeals of both the appellants with consequential relief in accordance with the law and the order .....

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