TaxTMI 
TaxTMI 
2005 (5) TMI 560
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.... Estate, Mazgaon, Mumbai-10. The officers of DGCEI, acting on an intelligence, searched the appellants factory and office on 22-7-l997 and statements of the appellants proprietor and manager as also various officials of M/s. Voltas Ltd. were recorded which culminated in issue of Show Cause Notice dated 26/28-9-1998 demanding duty of Rs. 32,69,001/- from the appellants on the ground that the goods cleared in the guise of repaired and reconditioned coils and condensers under invoices of M/s. Neha Refrigeration were goods manufactured by the appellants in their factory. The other appellant is the Manager of M/s. Sapna Engineering. 2. On adjudication, the ld. Commissioner vide the impugned order confirmed the demand against the appellan....
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....ould not be pre-determined by limit issue of Show Cause Notice to only one unit which is considered to be the real unit. (a) 1997 (94) E.L.T. 88 (Tri) - Ogesh Industries v. CC (b) 2003 (151) E.L.T. 68 (Tri) - K.R. Balachandran v. CCE, Coimbatore. (c) 2003 (161) E.L.T. 1136 (T) - Poly Resins v. CCE, Chennai. (d) Failure to issue such notice to one of them was held to be bad in law and appeals were allowed only on this point. (iii) Statements of various officials of M/s. Voltas Ltd. confirmed dispatch of defective coils to M/s. Neha Refrigeration and their receipt after they are duly repaired, from M/s. ....
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.... the Show Cause Notice issued to the appellants M/s. Sapna Engineering, demanding duty in respect of the goods cleared under the invoices of M/s. Neha Refrigeration alleging that it was floated by the appellants, and it existed only on paper as it did not have any factory or manufacturing facility for manufacture of condensers or evaporator coils or other parts of air conditioning and refrigerating appliances. That the goods on which duty had been demanded were cleared in the documents of M/s. Neha Refrigeration. However, no Show Cause Notice has been issued to M/s. Neha Refrigeration asking them to show cause as to why M/s. Neha Refrigeration should not be considered as a dummy unit of the appellants. The Ld. Advocate for....
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....ements of employees of M/s. Voltas Ltd., confirm regarding the fact of dispatch of defective coils to M/s. Neha Refrigeration and its receipt after due repairs from M/s. Neha Refrigeration as could be seen from the extract of statements of Shri R. Kharve, Service Manager of M/s. Voltas Ltd., (para 4.8 of show cause notice, extract of statement of Shri Jayant S. Dandekar, Foreman of M/s. Voltas Ltd., para 4.9, extract from the statement of Shri K.R. Kallianpur, Materials Manager, M/s. Voltas Ltd., para 4.4 to 4.15 of the SCN. This factual position was also reiterated and got confirmed during the cross-examination of Shri G.R. Naik, Inventory Clerk of M/s. Voltas Ltd. The ld. Commissioner completely ignored all these depositions in his findin....
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....Air conditioners and Refrigerators on which duty demand has been made and arrived at any finding thereon. Further, to our query as to whether there has been co-relation with reference etc. purchase of raw materials by the appellants with the goods manufactured, the ld. Jt. CDR stated that no co-relation is available in the SCN. This feels us to find that the basis for raising demand and leveling allegations against the appellants. (vi) The comparison of costing of the repaired coil with that of new coils, as contained in para 4.15 of Annexure-A to the SCN & which the appellants explained that the comparison is unrealistic as Excise duty payable on coil is not taken into account and the cost of the new coil would work out to R....