2000 (6) TMI 331

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....od Garg under Rule 209A of the Central Excise Rules. 2.  The brief facts of the case are that M/s. Garg Forgings and Castings Limited are engaged in the manufacture of Cycle parts forgings and of auto parts forgings. The Cycle parts forings are exempted from payment of duty, whereas, auto parts forgings are liable to pay excise duty. M/s. Garg Forgings and Castings Limited is selling all the products through two trading firms i.e. M/s. Garg Trading Company, proprietorship of Narsi Das Garg and M/s. Super Engineers, proprietorship of Shri Vir Thakur and both of were also Directors of M/s. Garg Forgings and Castings Limited. The allegation against the applicants is that they were clearing auto parts forgings under the guise of cycle p....

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....its that the applicants created two dummy proprietorship firms, M/s. Garg Trading Company and M/s. Super Engineers and two Directors of the M/s. Garg Forgings and Castings Limited, Shri Narsi Das Garg and Shri Vir Thakur were proprietors of these firms and they were channelising their auto parts forgings to these two trading firm to evade the payment of duty. He submits that M/s. Garg Forgings & Castings Limited were selling auto parts forgings and declaring in the Revenue record as cycle parts forgings to avail the exemption to the above mentioned trading firms and these trading firms thereafter, sell these goods as the auto parts forgings to various customers. He submits that during the relevant period M/s. Garg Trading Company has sold a....