2014 (8) TMI 449

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....the Appellant. Shri R.K Singla, Commmissioner (AR), for the Respondent. ORDER Heard both sides extensively on the stay petition. 2. The relevant facts, in brief, are that the appellants were running a factory manufacturing automobile tyres and tubes in their own brand name and became sick. As per scheme approved by Board for Industrial and Financial Reconstruction (BIFR), M/s. Apo....

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....registration held by the appellant was surrendered and ATL has taken fresh Central Excise registration in the year 1995 for the same premises. The goods manufactured were accounted and cleared in the name of ATL on payment of excise duty by ATL. The Cenvat credit of service tax paid by the appellant on the rentals received from ATL was being taken by ATL for payment of excise duty on the tyres man....

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....ty which incidentally included the workers employed by them. The primary purpose of the agreement is for utilization of the manufacturing facility for manufacture of tyres and utilizing the work force directly employed in the factory in the said activities. Therefore, the payment towards the salary and dues attributable to employees cannot be segregated from the overall payment and taxed under 'ma....

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....ed ATL to manufacture of tyres of 'Apollo' brand in the plant and machinery owned by the appellant and the same was in pursuance of the scheme approved by the BIFR. The ATL is clearly manufacturer of excisable goods and, undisputedly, duty is being paid by them. On a close perusal of the agreement, we do not agree with the submission that the same should be treated only as an agreement for supply ....