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TMI Blog2011 (7) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... Wire Pvt. Ltd., Nasik (hereinafter referred to as MMWPL), Shri Girish N Rathi, Factory Incharge, Shri N.K. Rathi, Factory Manager, Shri Mohan Rathi, Director and M/s. Classique Insulator Conductors Pvt. Ltd., Nasik (hereinafter referred to CIPCL). 2. M/s. MMWPL are manufactures of base copper wires, enamelled copper wire and waste and scrap of copper falling under Chapter 74 of Central Excise Tariff Act, 1985. During the course of search of factory by Central Excise officers, 503 boxes of enamelled wires were found lying in the administrative building of the factory and these goods were not entered in the RG1 register. Said goods were kept ready for clearance under cover of invoices of M/s. Bhilai Conductors (P) Ltd., their sister u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1944. The Additional Commissioner, Central Excise, Nasik, vide his order No. 65/2001 dated 15/11/2001 confirmed a demand of Rs. 10,70,897/- (Rs. 1,75,000/- adjusted as already paid), on M/s. MMWPL in respect of clandestine removal of goods and confirmed a demand of Rs. 3,72,988/- being differential duty on M/s. MMWPL on account of M/s. CICPL being related person and imposed penalties of Rs. 14,43,885/-, Rs. 50,000/-, Rs. 1,00,000/-, Rs. 1,00,000/-, Rs. 30,000/- on M/s. MMWPL, and Shri G.N. Rathi, Shri N.K.Rathi, Shri Mohan Rathi, and on M/s. CICPL respectively and also ordered recovery of interest on the amount confirmed under Section 11AB, hence the appeals. 4. Brief facts in Order-in-Appeal No. 680/AUR/2002 dated 29/11/2002 are that M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al. 6. We have heard the learned SDR for the Revenue, who submitted that there are three issues involved in these appeals: (i) The first issue is demand of duty on clandestine removal of goods during the period 07/03/2000 to 30/03/2000; (ii) The second issue is whether, M/s. MMWPL and M/s. CICPL are related persons; and (iii) The third issue is in respect of Appeal No. E/900/2003 against Order-in-Appeal No. SDK(2018)680/AUR/2002 dated 29/11/2002 regarding ineligibility of small-scale exemption to M/s. MMWPL during the period 01/04/2000 to 07/04/2000. 7. The learned SDR further submitted that during the search of the factory 503 boxes of copper wire were found lying in the Administrative Building and those were not entered in the RG1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. CICPL should be treated as assessable value. 10. On the third issue, the learned SDR submits that as per para 4 of the Order-in-Appeal, for the year 1999-2000 the respondent has cleared goods valued at Rs. 2,98,91,141.16 and also cleared goods to M/s. CICPL for the year 1999-2000 valued at Rs. 10,93,000/-. He also adds that if value of clandestinely removed goods also taken into account, total clearance during 1999-2000 exceeds Rs. 3 crores making the assessee ineligible to SSI exemption. In fact the respondent have themselves started paying duty w.e.f. 08/04/2000. Duty for the period 01/04/2000 to 07/04/2000 is also recoverable from them. 11. Learned advocate appearing on behalf of the respondents denied any clandestine re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anies are related to each other in any manner or one being subsidiary of the other. These are both independent companies with one person as common Director. Law of commonality does not lead to any relationship. He submitted that the Commissioner (Appeals) has rightly allowed their appeals. 14. After hearing both sides we find that charge of clandestine removal is sought to be maintained on the basis of production cards recovered from the Quality Control Laboratory of the assessee and also on the basis of statement of Shri Santosh Yadav and Shri G.N. Rathi. Regarding recovery of production cards bearing M. series, M/s. MMWPL claim that goods pertaining to the cards go to production department for rectification and after rectification new l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tosh Yadav from M/s. CICPL may be for reason of administrative and accounting convenience. Moreover T L Sahu of Quality Control Lab, in his statement stated that after testing, goods are delivered to Shri Santosh Yadav for dispatch. Shri G.N. Rathi and Santosh Yadav, both were present in the factory at the time of visit of Central Excise officers. Statements recorded under Section 14 of the Central Excise Act cannot be ignored by the appellate authority in aforesaid circumstances of the case. 17. In view of the above, we set aside the finding of the Commissioner (Appeals) rejecting clandestine removal of goods and we hold the case of clandestine removal is established against the respondent. 18. Coming to the issue of relation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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