2013 (10) TMI 1042

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....l, proprietor of M/s Mica Mold and Director of M/s Mica Mold Pvt. Ltd., and penalty of Rs.20,00,000/- on Shri Harsh Agrawal, Director of M/s Mica Mold Pvt. Ltd., imposed under Rule 26 of the Central Excise Rules, 2002. 2. At the outset, the ld.Advocate. appearing for the applicant, has submitted that the applicant, M/s Mica Mold, is engaged in the manufacture of electrical items and availing SSI exemption Notification No.8/2003-CE dated 01.03.2003. The contention is that the applicant, M/s Mica Mold Pvt. Ltd. (M/s MMPL) is also engaged in the manufacture of the same items and all supplies were made by both to Indian Railways only. The ld. Advocate has submitted that both are independent units having separate legal existence in law and fa....

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....ted by the Income Tax Authorities and the declaration made by the proprietor of the Company before the Income Tax Authorities, cannot by itself be an evidence to construe that un-accounted money found in the premises of the applicant at the time of visit of the officers, was related to the alleged clearance of goods without payment of duty for the entire period of show-cause notice i.e. from 2003 to 2007. It is his submission that the report of the Income Tax Officers, on which the ld. Commissioner has relied as mentioned at Para 10.6 of the order was never handed over to them to make submissions on the same. He has further submitted that in the show-cause notice at Pata 32, it has been alleged that the applicants are receiving the entire a....

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....e records. We find that the issue in the present case fall in a narrow compass. The allegation against M/s Mica Mold is that they have wrongly availed the benefit of SSI Exemption Notification No.8/2003-CE dated 01.03.2003 by creating another Company, namely, M/s MMPL and the clearances of goods from the said shadow Company were in fact, the transactions that were carried out by the applicant with railways. Accordingly, the Department proposed to club the clearances of both the Companies, so as to compute the aggregate value of clearances in arriving at the benefit of Notification No.8/2003-CE dated 01.03.2003, as amended. Besides, the allegation of clandestine removal by the applicant, M/s Mica Mold, were also confirmed by the ld. Commissi....