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TMI Blog2017 (3) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... Elite Metal Products, M/s. Karam Sanitations, M/s. Elkay Sanitation (P) Ltd., M/s. Goldline Bath Fixture (P) Ltd., M/s. Sherya Sanitation (P) Ltd. were also manufacturing the same goods but they were manufacturing similar goods which were bearing their own brand name such as AGI, Elite, Karam, Canter, Glibs & Shreya. In addition to manufacture of said goods bearing said brand names they were also manufacturing said goods with brand name L & K. Director General of Central Excise (Intelligence) conducted investigation against above stated manufacturers who were claiming SSI exemption contained in Notification No. 14/96 dated 23.07.1996 as amended from time to time. The investigations conducted pertain to period from July, 1996 to May, 2000. Simultaneously searches were continued at various factory premises and record were examined and statements of concerned persons associated with manufacture were recorded and on the basis of investigation it appeared to Revenue that all the manufacturing units stated above are misusing the exemption provided for SSI exemption through Notification No. 14/96 dated 23.07.1996 by manufacturing goods bearing the same brand name in different manufacturi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tunity to the noticee to file detailed reply to show cause notice and furnish defence evidence and adjudicate the matter. The manufacturers-appellants submitted before the Original Authority that clubbing of clearances was unwarranted and that the show cause notice does not contain any allegation that any of the noticee is a dummy unit and clearances of only dummy unit can be clubbed with the main unit in view of various case laws. They further contended that the said manufacturing units run with the help of loan from the bank and their balance-sheet did not show flow back of profit from one unit to other unit. They further contended that there were no allegations in the show cause notice that any of the said manufacturing units did not undertake the activity of manufacturing and they are only showing the clearances. They further. Contended that value of the clearance of the units did not excess to Rs. 3 Crore in any preceding year and this is how they were eligible to avail exemption. They further contended that that the said notification provided that value of clearances of goods bearing brand names of other persons will not be added in the aggregate value of cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow . - "(1) I confirm the demand of Rs. 29,11,919/- (Rs. Twenty Nine Lacs Eleven Thousands Nine Hundred and Nineteen only) against M/s Punjab General Manufacturing Works, Mathura. (Noticee No. 1 ' ) under provisio to Sec. 11A of Central Excise Act, 1944. I also order the party to pay the interest at appropriate rate under Section 11AB of Central Excise Act, 1944. (2) I also impose an equal penalty of Rs. 29,11,919/- (Rs. Twenty Nine lacs Eleven Thousands Nine Hundred and Nineteen only) upon M/s Punjab General Manufacturing Works, Mathura. (Noticee No. 1) under Section 11AC of Central Excise Act, 1944 read with Rule 173Q of Cent Excise Rules, 1944. (3) I confirm the demand of Rs. 15,89,136/- (Rs. Fifteen lacs Eight Nine Thousands thousand One Hundred Thirty six only) against M/s Ashoka Genera Industries, Mathura. (Noticee No. 20 under proviso to Section 11A of Central Excise Act, 1944. I also order the party to pay the interest at appropriate rate under Section 11AB of Central Excise Act, 1944. (4) I also impose an equal penalty of Rs. 15,89,136/- (Rs. Fifteen lacs Eighty Nine Thousands One Hundred Thirty Six only) upon M/s Ashoka General Industries, Mathura. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Hundred Seventy only) Against M/s Shreya Sanitations (P) Ltd. Mathura (Noticee No. 6) under Section 11AC of Central Excise Act, 1944 read with Rule 173Q of Central Excise 1944. (13) I confirm the demand of Rs. 24,68,925/- (Rs. Twenty Four lacs Sixty Eighty Thousand Nine Hundred twenty Five only) against M/s Goldline Bath Fixtures (P) Ltd., Mathura (Noticee No. 7) under proviso to Section 11A of Central Excise Act, 1944. I also order the party to pay the interest at appropriate rate under Section 11 AB of Central Excise Act, 1944. (14) I also impose an equal penalty of Rs. 24,68,925/ (Rs. Twenty Four lacs Sixty Eighty Thousand Nine Hundred twenty Five only) against M/s Goldline Bath Fixtures (P) Ltd., Mathura (Noticee No. 7) under Section 11AC of Central Excise Act, 1944 read with Rule 173Q of Central Excise Rules, 1944. Thus, in respect of the 7 Noticee as mentioned above a demand of Central Excise duty totally amounting to Rs. 1,44,96,923/- has been ordered to be confirmed. They are directed to pay the same forthwith alongwith the interest due thereon under Section 11AB of the Central Excise Act, 1944. (15) I, further, order to appropriate t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the units and that Where the duty has been demanded from both the units, it would rather lead to an inference that the Revenue has recognized implicitly both of them as independent units and that such proposition of law flows from the Apex Court judgment in the case of Gajanan Fabrics Distributors v. CCE, Pune - 1997 (92) E.L.T. 451 (S.C.). He further submitted that Hon'ble Supreme Court has affirmed the decision of this Tribunal in the said case of C.C.E., Chandigarh vs. Shiv Exim Enterprises reported at 2015 (322) E.L.T. 832 (SC). 6. Heard learned D.R. on the ground of appeal in the appeal filed by Revenue. Learned D.R. has reiterated the grounds stated in appeal filed by Revenue. 7. We have considered the rival contentions. We find that the impugned show cause notice has two aspects. First aspect was related to clubbing of clearances and the other was demand of duty allegedly evaded on clandestine removal of goods manufactured. In respect of demand of differential duty on clubbing of clearances, we find that Revenue has jointly demand duty from M/s. Punjab General Manufacturing Works, Mathura, M/s. Ashoka General Industries, M/s. Elite Metal Products, M/s. Kara ..... X X X X Extracts X X X X X X X X Extracts X X X X
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