1998 (11) TMI 207

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....5. Classification of the goods was approved under CET sub-heading 4819.12 but the assessees claim for exe- mption under Notification 175/86 dated 1-3-1986 was denied on the ground that the unit was a small scale ancillary unit and, therefore, not of the category of SSI unit which alone was covered by the Notification. Vide Order dated 26-6-1992, the lower appellate authority upheld the Assistant Collector's order on classification; however, he extended the benefit of SSI exemption under Notification 175/86, placing reliance on Ministry of Industry's clarification dated 19-3-1979 that a small scale unit includes a small scale ancillary industry having investment in plant and machinery not exceeding the prescribed limit (The assessees had als....

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....9, 89-90 and 90-91 as they were not holding an SSI certificate from 1-3-1988. The notices also proposed imposition of penalty on the manufacturer as well as its Partner, Directors and Manager. The notices invoked extended period of limitation on the ground of suppression of facts by mis-classification of the goods under CET sub-heading 4819.19. The notice was adjudicated by the Collector vide Order-in-Original No. 26/92, dated 30-11-1992 and the charges levelled in the notices were confirmed. In addition to confirmation of duty demand the following penalties were imposed by the Collector : M/s. Gujarat Cup Co. Rs. 30 lakhs. Sh V.R. Gandhi, Partner Rs. 10 lakhs. Sh. D.P. Soni, Manager, Rs. 10,000/- Sh. R.R. Gandhi, Direc....

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....up Company cannot argue that the Collector (Appeals) finding on limitation is applicable to them. However, we find that the Department itself has proceeded on the basis that the Collector (Appeals) finding on time bar covers M/s. Gujarat Cup Company also, as seen from the memorandum of appeal filed by the Revenue in Appeal No. E/4926/92-C. Further, the findings in the Tribunal's Final Order relating to Monita Containers and Modasa Packaging. On the absence of suppression or mis-declaration apply with equal force to M/s. Gujarat Cup Company who had filed declarations during the relevant period, described their process of manufacture to the Central Excise authorities and explained their case to the Assistant Collector on 15-5-1989 before fili....