2011 (1) TMI 859

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.... Area, Bhiwadi, Rajasthan had an agreement with M/s. M.J. Industries Pvt. Ltd., 59. HPSIDC, Baddi, H.P. (hereinafter referred to as M/s.M.J.) for packing of various shaving projects - blades, razors, batteries, shaving lotion, shaving gel, deodorant, etc. supplied by them. M/s. M.J. after packing of the shaving products, were returning the same back to the M/s.Gillete. Since the packing of the goods, in question, amounted to manufacture and since the area in which the unit of M/s. M.J. is located, the hill area exemption under notification no.50/03-CE was available, M/s. MJ, after filing the required declaration, were availing of the duty exemption under this notification. The department was of the view that since from the agreement of Gill....

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....- along with interest under Section 11 AB against M/s. Gillete. Besides this, he also imposed penalty of Rs.5 Lakh on M/s.Gillete under Section 11 AC of the Central Excise Act, 1944 but no penalty was imposed on M/s. MJ. 1.1 It is against these orders of the Commissioner that these appeals have been filed by M/s. Gillete and M/s. MJ. 2. Heard both the sides. 3. Shri V. Lakshmi Kumaran, Advocate, ld. Counsel for the Appellants M/s. Gillete pleaded that there is no dispute about this fact that packing is done by M/s. MJ in terms of their agreement with M/s. Gillete and after packing of the goods, the same are returned to M/s. Gillete, that there is no dispute that the required declaration under Notification No.50/03-CE had been filed by M....