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2015 (10) TMI 1543 - CESTAT CHENNAI

2015 (10) TMI 1543 - CESTAT CHENNAI - TMI - Duty demand - Clubbing of turnover of the Job workers - dispute regarding Valuation - dummy units or not - Invocation of extended period of limitation - Held that:- Prima facie the adjudicating authority in his findings held that eleven units are nothing but job workers of the appellants merely on the grounds that these were controlled by the appellants by way of supply of raw materials and arrange for supply of raw materials etc. We also find that the .....

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leven units, who are already registered with the Department. Duty cannot be demanded on the appellants for trading of goods.

Prima facie, we find there is contradictions in the allegations. It has not been clearly brought out in the order whether the appellants are the principal manufacturer and whether eleven units are only job workers. It is seen from the records that neither the appellants nor eleven units have opted any job work procedure. Whereas the adjudicating authority has d .....

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And P K Choudhary, Member (J) For the Appellant : Mr G Natarajan, Adv For the Respondent : Mr K P Muralidharan, AC (AR) Per R Periasami Heard both sides. 2. The brief facts of the case are that the adjudicating authority demanded excise duty of ₹ 1,25,98,269/- on the duty paid match boxes purchased on sale and cleared for the period from 01.04.2007 to 30.09.2012 invoking extended period under Section 11 A(2) of the Central Excise Act, 1944 and also imposed equivalent penalty under Section .....

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ent match manufacturing companies. He further submits that all these eleven units are independently registered with central excise and they are not related to the appellant's unit. These units received the duty paid match sticks and manufacture final product 'Match Boxes' with the brand name of "Chavi" and in turn sell the finished goods to the appellants or to their group companies on payment of excise duty. All the transactions are independent and they are not job workers .....

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y should have been demanded on the job workers by taking the final price of the principal supplier of the raw materials. He further submits that Rule 9 &10 of the Valuation Rules is not applicable in this case. If Rule 10A is applicable then duty should have been demanded only from the job workers. He further submits that the entire transaction was to the nature of the sale. They discharged vat and also other units also paid vat on sale. He submits that raw material supplier cannot be treate .....

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judicating authority and submits that duty has been rightly demanded from the appellants as they are controlling supply raw material and also extending credit period, no real payment has been made between the appellant and other units but only by way of all these have been done through book adjustment. He relied upon the decision of the Hon'ble High Court of Gujarat in the case of Symphony comfort systems Ltd. Vs. UOI - 2014 (301) ELT 215 (Guj.). 5. After hearing both the sides we find that .....

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