TaxTMI 
TaxTMI 
2006 (4) TMI 286
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....at pursuant to intelligence collected that manufacturing activities of two companies having common directors are being carried out together in one and the same premises, a visit was made to the premises of M/s. Starlite Corporation and on inspection, it was observed that M/s. Starlite Corporation is operating/conducting manufacturing activities in Gala No. 37, Evergreen Industrial Estate, Shakti Mill Lane, Mahalaxmi, Mumbai and in the same gala one more company viz. M/s. Avdel Tools & Services is carrying out manufacturing activities too. While M/s. Starlite Corporation is engaged in manufacture of Aluminium Blind Rivets, Steel Nails, Aluminium Rivets Shells etc. M/s. Avdel Tools & Sorvices is engaged in the manufacture of Avex Hand Tools, ....
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.... preparing challan, despatch and purchase of both the companies. 4. In view of above, it was concluded that both the units having same manufacturing premises and being run by the same person having common electricity meter for which the payment was made by one unit M/s. Starlite Corporation only and being run by one person having common workers were in fact one and the same and that M/s. Starlite Corporation was a parent company and M/s. Avdel Tools & Services was a dummy and sham fake unit floated with an intention to evade payment of Central Excise duty. A show cause notice was accordingly issued to M/s. Starlite Corporation and M/s. Avdel Tools & Services seeking to club clearances of the two units and demanding duty to the exten....
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....hat the payment of duty was made merely to buy peace. 8. It was further submitted that the demand for duty confirmed by the order-in-original and amounting to Rs. 2,24,542/- was quantified based on the chart at page 79 of the appeal pertaining to Advel Tools and Services. The principal charge in the show cause notice in Para 11 is that M/s. Starlite Corporation is the parent company and M/s. Avdel Tools and Services is a dummy or sham unit floated with an intention to evade payment of Central Excise duty. The demand of duty was for the period 1993 to 1997. It was explained that from the year-wise clearance details in the said chart accepted by the department for the period from 1993 onwards and even prior thereto Starlite i.e. the p....
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....98 which states that Mr. G.G. Bulchandani controls all activities of M/s. Starlite Corporation and M/s. Avdel Tools and Services though he holds share of 10% only in both the firms. However, this letter is not traceable and an affidavit has been filed by them to this effect. It was denied that Mr. G.G. Bulchandani controls all the activities of two firms. 11. The learned S.D.R. however submitted that the adjudicating authority in his finding portion of the order-in-original has clearly held that M/s. Starlite Corporation was the one who was required to get registered under Section 6 of the Central Excise Act, 1944 read with Rule 174 of the Central Excise Rules, 1944 and to file a declaration under Rule 173B, determine duty on the go....
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....t the duty has to be considered as having been demanded from M/s. Starlite Corporation is not correct as the name of M/s. Starlite Corporation has not been mentioned at all in the order portion. Further proceedings against M/s. Avdel Tools and Services have also not been dropped. The imposition of penalty on the four partners is also vague as the order says penalty of Rs. 50,000/- is imposed on all four partners without specifying whether Rs. 50,000/- is imposed on each of the partner or collectively together on all the partners. The order portion simply demands a penalty and imposed penalty without specifying any name or even using the word 'them'. It is a totally bland and unspecific order. Commissioner (Appeals) also has declined to inte....