2006 (11) TMI 446

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....g disposed of by a common order. 2. The relevant facts that arise for consideration are that the appellant No. 1, Superior Fabrics is a manufacturer of ready-made garments and mosquito bed nets classifiable under Chapter Heading No. 6201.00 and 6301.90 of the Central Excise Tariff Act, 1985. The appellant No. 1 was registered with the Central Excise authorities for such activity. On an intelligence that the appellant No. 1 was evading Central Excise duty on mosquito bed nets manufactured and cleared by them to various Government departments, investigation was initiated by the officers of DGCEI. On the completion of the investigation, show cause notice was issued to the appellants for the demand of duty on the supplies of mosquito ne....

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....ot taken place in the factory premises of the appellants. He also submits that the adjudicating authority has not considered the fact that they had procured these mosquito nets from traders and supplied to HSCC to honour contractual obligations. It was also submitted by him that the conclusion/finding of the adjudicating authority that the supplier of the mosquito nets to the appellant could be considered as a job worker and the liability to pay duty on such job work goods is on the appellant, is on a totally wrong footing as there was no evidence put forth that the supplier of the mosquito nets was a job worker of the appellants. Hence it is his submission that the adjudication order be set aside. 4. The leaned SDR on the other han....

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....er of mosquito nets. At the same time, the capacity of the appellant to manufacture such a huge quantity of mosquito nets has to be taken into consideration before arriving at the conclusion whether the appellant No. 1 has manufactured the said quantity of mosquito nets in his own factory. The appellant has produced voluminous documents before us to marshall the argument that they had procured these mosquito nets from M/s Gagan Fabrics. Sales tax entry form for receipt of the material from Ghaziabad into Delhi was also relied upon to support the claim that said mosquito nets were purchased by them. The said entry tax form indicates that mosquito nets were received from Ghaziabad by the appellant No. 1. We also find that the balance sheet of....