TaxTMI 
TaxTMI 
2005 (6) TMI 338
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....Lakhs for violation of the rule was imposed. 1.2 The appellants are engaged in the business of manufacturing of Radiators, Radiators cars, radiator pressure cap and composite coolers at the material time classified under erstwhile Tariff Item No. 68. They had obtained the required licences from Ministry of Industry and the Central Excise authority and were in business. 1.3 The case of the appellants is that their General Manager Shri Nareshbhai Patel runs another unit by name and style of Super Care (Gujarat) at Vadodara on its own premises sole proprietary firm and machinery and capital as a and (sic) was not under control or related to the appellants in any other fashion. The appellant had entered into an agreement with Su....
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....bsp; The act of manufacture of such goods on material received from Supercores and removed without accounting & payment of duty by the appellant was corroborated by the statements of the commercial Manager. (v) The statement of Shri N. Patel, General Manager and perusal of the agreement entered with Supercore it appeared that Supercore was a unit created by the appellant company with a mala fide interest to evade payment of duty and they were having overall control over the working of Supercore. (vi) The Radiator core therefore manufactured in the premises of the appellants and shown as of Supercore were excisable goods which were required to be accounted for by the appellant. (....
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.... to Central Excise & Service Act, 1944 and were holding an Excise Licence and were removing goods on payment of duty thereon. (b) (i) On a visit by officers on 28-2-85, for checks, it was noticed that the unit was receiving 'Brass Sheets' and 'Copper Foils' in pieces cut to size on M/s. Supercore (Gujarat), 348, G.I.D.C. Maker Pura, Baroda-10 (Super per short). (ii) At the unit, the material so received i.e. fins & tubes and other Radiator parts were manufactured which were excisable goods under Tariff Item 68. These goods were removed on internal memos to Supercore (Gujarat) and goods covered by one such memo no. 4147 were detained. It was also found ....
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....erefore invoking the proviso clause of Section 11A(1) is barred by limitation. (d) Copper fins, water channels & header plates are not proved to be independent marketable commodity or that they were marketed. The levy of excise duty thereon is therefore ab inito not established beyond all doubts. In view of the affidavits placed on record, which have not been dealt with appropriately as was required, therefore the order on demands of duties cannot be upheld as levy of duty is not established. (e) Since relationship amongst the persons running the appellant company and Supercore (Gujarat) could not be established as under the concept of related person under Section 4 of the Central Excise Act, 1944 i....