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TMI Blog2018 (6) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... s annexed in the appeal paper book and stated to have been filed with the Central Excise Department, shows that there is one common gate in the boundary wall and inside on the plot there is separate office of the two units and also having separate sheds. Both have got their own separate set of workers and machinery for carrying out manufacture. There was an inspection in both the units of the father and the son on 24/07/2013. During the visit it appeared that the two units/firms were operating, the first one was M/s Kailash Industries and the second was M/s Universal Engineers & Traders engaged in the fabrication of machinery equipment and manufacturing of Control Panels and were registered with the Central Excise Department as a manufacturer. The third entity was a registered dealer M/s Nishant Weldtech India Pvt. Ltd. (earlier known as M/s Nishant Industries) were trading/dealing in items like Welding Electrodes, etc. The fourth entity was M/s Durga Ceramics & Refractories a registered dealer were trading in refractory materials. 2. During the search Shri K. C. Gupta An Electrical Engineer) - Proprietor of M/s Kailash Industries, informed that they were procuring orders for supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in 2012-13 was Rs. 41 lakhs approx & in 2013-14 was about Rs. 41 lakhs approx. Further vide letter dated 02/09/2013 M/s Kailash Industries submitted list of major customers, copies of purchase orders from major customers for the last five years and copies of balance sheets for the Financial Years 2008-09 to 2012-13. 4. Statement of Shri Pawan Kumar Gupta, Senior Manager (Finance) of M/s Ferrolite Jointings Ltd. Ghaziabad (a major customer of M/s Kailash Industries) was also recorded on 07/10/2013, wherein he inter-alia stated that they are engaged in the manufacture of Gasket Jointing Sheets since 1989, they are procuring Electrical Panels & Bus Bars of various dimensions for different purposes, duly coated and painted from M/s Kailash Industries. According to their purchase order, M/s Kailash Industries procure each and every material on their own and send them the required goods. They do not send any material, in any case, to M/s Kailash Industries for manufacture of Electrical Panels/Bus Bars. As per his knowledge, M/s Kailash Industries are undertaking their manufacturing activities of Electrical Panels. Their technical team, on routine basis, keep visiting the factory premi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, as far as the goods manufactured by M/s Universal Engineers & Traders and shown to have been cleared on the tax invoices of M/s Kailash Industries during the period April, 2009 to June, 2013, that they two have interest, directly or indirectly in the business of each other. 8. Accordingly, it appeared to Revenue that the appellant M/s Universal Engineers & Traders is liable to pay Central Excise duty on the turnover and/or clearances of M/s Kailash Industries and further in absence of declaration as required under Notification No. 214/86-CE dated 25/03/1986, the appellant is not entitled to benefit of goods removed under job work without payment of duty and further there is no undertaking given by M/s Kailash Industries to the Jurisdictional Central Excise Officer of M/s Universal Engineers & Traders. It further appeared that M/s Universal Engineers & Traders have not declared any receipt of job charges in their books of accounts from M/s Kailash Industries for the period under dispute 2009-10 to 2011-12 and accordingly the appellant have evaded the applicable Central Excise duty. Accordingly, Central Excise duty was worked out on the full turnover of M/s Kailash Industries for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed expenses as well as paying wages. They also got some work done through job work and also had receipts by way of consultancy charges. Shri K. C. Gupta is a qualified electrical engineer. Further the fact of investment in plant and machinery & land and building has been declared in the balance-sheet. From the balance-sheet M/s Kailash Industries reveals, have got their own sundry debtors for business purposes. The ld. Counsel has also drawn my attention towards the Sales Tax Assessment Order of M/s Kailash Industries. During the course of investigation/adjudication M/s Kailash Industries also led evidence being copy of their UP-VAT returns further stating that theirs is a small firm and they employ workers through labour contractors on contractual basis, as and when required, disclosing the name of the contractors, further stating that being a small firm, they do not do work regularly on day-to-day basis and they are dependent on D.G. Set for the requirement of electricity. M/s Kailash Industries also filed their job work challan & books for five years, which indicate that they are getting job work done from other parties, as regards powder coating of the boxes, painting etc. In s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufactured in a factory on 'job work' from the whole of duty of Excise leviable thereon which are specified in the said schedule, subject to the condition that the supplier of the raw material or semi-finished goods gives an undertaking to the proper officer having jurisdiction over the factory of the job worker - that the specified goods received from the job worker shall be used in the factory of such supplier in or in relation to the manufacture of specified goods which are exempted from the whole of duty of Excise leviable thereon under the aforesaid notification (SSI exemption notification). Thus, admittedly the unit of M/s Kailash Industries being an SSI unit and had filed declaration with the Department, they were entitled to the benefit of Notification No. 83/94-CE as amended. Only for the lapse of having not given undertaking by M/s Kailash Industries to the Jurisdictional Excise Officer of M/s Universal Engineers & Traders, does not call upon for levy of Excise duty and penalty and accordingly he prays for allowing the appeal with appropriate relief. He further relies on the ruling of this Tribunal in the case of G.G. Automotive Gears Ltd. Versus Commissioner of Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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