2003 (9) TMI 632

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....ation of 6 sets of bridge builder systems (hereinafter referred to as BBS) on the basis of technical know-how and drawings of a Narway Government through their representatives M/s. United Trading Corporation, Madras and M/s. S.K. Trading Company, Bombay. On the basis of an intelligence that BBS used by M/s. UPSBC were manufactured and cleared without discharging Central Excise Duty therein and consequent to the investigations conducted by the Department show cause notices were issued to M/s. S.K. Trading and M/s. UPSBC for the manufacture and clearance of six sets and two sets respectively of BBS without obtaining Central Excise Registration and without following the procedures prescribed and discharging duty therein. The notice also sought....

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....on. Therefore, the duty as proposed in the show cause notice amounting to Rs. 8,71,918/- was required to be confirmed under the provisions of Rule 9(2) read with to Section 11A(1). (b) As regards the show cause notice issued to M/s. S.K. Trading the learned Commissioner, after recording that they had not submitted any written reply to the show cause notice and considering their reply in the hearing found, that they were sub-contractors for M/s. UPSBC Ltd., and had been supplying raw material and drawing and fabricated BBS according to the same. This was not acceptable to the Commissioner as M/s. S.K. Trading had agreed to the fact that they were engaged in the fabrication of the BBS and infact had assembled the goods at site from the ....

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....52A, a penalty of Rs. 1 lakh was imposed on Shri Prabhuvala partner of M/s. S.K. Trading and Rs. 25,000/- was imposed on M/s. United Marketing under Rule 209A. No orders were passed as regards the proposal to confiscate land, building, machinery, etc. The present appeals have been filed against the above said order and are being disposed of by this common order. 3. After hearing both sides, and considering the issues it is found - (a) The show cause notice dated 29-12-1995 in para 10 (XI) alleges - "The said six sets of BBS manufactured and cleared by M/s. S.K. Trading Company and two sets of BBS manufactured and cleared by M/s. UPSBC are moulding patterns which are used for moulding of RCC structures. The said BBS are excisabl....