2000 (8) TMI 697

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....with Section 11A(1) proviso of the Central Excises Act and also imposed penalty of Rs. 50,000/- on them. 2. The facts giving rise to this appeal may briefly be stated as under : 3. The appellants are engaged in the manufacture of rear axles, front axles, propeller shafts, components etc. of various automobiles falling under Chapter Heading 8708.00 of the Central Excise Tariff. During the course of examination of their monthly RT-12 Return, it revealed that they were manufacturing rear axles under "Inalsa" brand, in addition to their own brand in terms of the agreement dated 10-7-1990 entered by them with M/s. Inalsa Ltd., New Delhi. They being registered as SSI unit, also availed the benefit of Notification No. 1/93 dated 28....

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....rder-in-original. 5. The learned Counsel for the appellants has assailed the validity of the impugned order on the ground that after 12-6-1991 when the terms of the original agreement dated 10-7-1990 were amended, the appellants manufactured the rear axels under their own brand name and as such could not be denied the benefit of Notification No. 1/93 from that date onward. But the Collector has wrongly done so and as such the impugned order deserves to be set aside. 6. The learned JDR, on the other hand, while refuting this contention of the counsel has argued that even after the alleged amended agreement dated 12-6-1991 the appellants continued to manufacture the rear axels for and on behalf of M/s. Inalsa Ltd. under their ....

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....ped manufacturing rear axels for M/s. Inalsa Ltd. under their brand name. They rather admittedly even after 12-6-1992 continued manufacturing and supplying the rear axels to M/s. Inalsa Ltd. They in their classification lists effective from 1-4-1993 showed the use of brand name ITPL-Inalsa and ITPL-Inducto in respect of their product rear axels. They have been thus rightly held to had used the brand name of M/s. Inalsa Ltd. on their product, rear axels and supplied the same to that company even after the amended agreement dated 12-6-1991. By putting the words "ITPL" before the brand name "INALSA", the position did not change in any manner regarding their use of brand name of M/s. Inalsa Ltd. They continued to manufacture after entering into....