TaxTMI 
TaxTMI 
2015 (11) TMI 1245
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....hich is partnership concern of Shri Pradeep Kumar Goel, Shri Ashok Kumar Goel, Shri Manoj Kumar Goel and Shri Mukesh Kumar Goel, all real brothers and is engaged in manufacture of brake linings for 4-wheelers under the brand name-TVS, Rane, Compo and Allied. They were also engaged in trading of other auto parts namely, clutch plates, clutch facing and rivets along with brake linings manufactured by them, from their shop and godown premises. 1.2 The period of dispute in this case is from 1997 -1998 to 1999-2000. These units were visited by the Jurisdictional Central Excise Officers on 17/6/1999. At that time, none of these units RPM and PKE were either having Central Excise Registration or were paying duty. According to the appellants, both the units, at that time, were within full exemption limit of the SSI Exemption notification. In course of search of the factory premises, the officers found that both-RPM and PKE, besides clearing the brakeing linings manufactured by them under their own brand names Raymond, Charlie and Allied, were also using the brand name of other persons, i.e., TVS and Rane. According to the department, the goods affixed with the brand name-TVS and R....
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....oduction of that many sets of brake linings and accordingly the production of brake linings has been determined by multiplying that number by 8. 1.5 During the search of the premises of RPM and PKE, certain stock of brake linings had been seized from both the premises and also from the premises of the shop and godown of PKE and that the stock had also been placed under seizure. 1.6 In view of the above investigation, a show cause notice dated 15/12/1999 was issued to RPM, PKE, Shri Pradeep Kumar Goel, Shri Ashok Kumar Goel and Shri Manoj Kumar Goel and Shri Mukesh Kumar Goel for- (a) confiscation of the brake linings seized from various premises; (b) demand of Central Excise duty amounting to Rs. 54,35,941/- from RPM chargeable on the goods valued at Rs. 3,60,88,342/- alleged to have been cleared during period from 1997-1998 to 1999-2000 under proviso to section 11A(1) of Central Excise Act, 1944 along with interest on it under section 11AB and also for imposition of penalty on RPM under section 11AC of Central Excise Act, 1944; and (c) imposition of penalty under Rule, 209A of Central Excise Act, 1944 on Shri Pradeep Kumar Goel, p....
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....r Goel, partner of M/s. PKE. He decided not to impose any penalty on Shri Manoj Kumar Goel and Shri Manish Kumar Goel who as per his findings were not responsible for day to day running of the affairs of PKE. 1.11 Against this order of the Commissioner, these appeals have been filed by PKE, RPM and Shri Pradeep Kumar Goel. As regards, the appeal filed by Shri Ashok Kumar Goel against this order, since he has expired, the same has been dismissed, as abetted, in terms of the Rule 22 of the CESTAT Rules by a separate order. 2. Heard both the sides. 3. Shri A.K. Jain, Advocate, ld. Counsel for the appellants, pleaded that while the Commissioner in the earlier order-in-original passed in the year 2000 had treated all the clearances made by RPM and PKE as of branded goods, in the de-novo proceedings, the Commissioner in terms of the directions in the CESTATs remand order has quantified the value of the clearances of the brake linings in respect of which the brand name TVS and Rane had been used and has demanded duty only in respect of that quantity of brake linings; that still the Commissioner in respect of the branded goods has adopted the value of the goods on the basis of pr....
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....e; that thus, the only issues which have to be decided are the issue of valuation and issue of quantum of alleged clandestine clearances; that as regards, the issue of valuation, there is absolutely no justification to reject the value of the goods shown in the invoices issued by the appellant and that as regards the quantum of goods alleged to have been manufactured which has been determined on the basis of three registers recovered from the premises of RPM, there is absolutely no justification for treating the figures of the production to be the production in terms of the sets of brake linings. He pleaded that if the value of the goods as mentioned in the invoice is accepted and the production of brake linings as recorded in the three registers seized from RPM is treated as the production of brake linings not of sets of brake linings, the duty demand would be very small. 4. Shri Yashpal Sharma, ld. DR, defended the impugned order by reiterating the findings of the Commissioner. With regard to the quantum of clearances, he stated that the figures of production as recorded in the three registers recovered from the premises of RPM are the figures of production in terms of the set....
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.... 7.1 The appellant were manufacturing the brake linings using brand name-TVS and Rane and also brake linings using their brand or other brands which are not owned by any particular person or unbranded brake linings. The Commissioner in the impugned order has denied SSI Exemption in respect of only brake linings cleared under the brand names-TVS and Rane. However, the value of the goods whether sold under the brand name TVS and Rane or sold under other brand names or sold without any brand has not been determined on the basis of the price declared in the invoices. In this regard, the Commissioner in respect of the brake linings bearing brand name TVS and Rane has adopted the price at which the brand name owners were selling the same goods and the value of the goods of other brand or unbranded goods has been determined on the basis of the quotations given by the three traders M/s. Masu International, M/s. Serbestos Auto International and M/s. Minocha Metals (P) ltd. 7.2 In the present case, it is not the departments case against the appellant that the appellant had any agreement with TVS and Rane for manufacture of brake linings as per their standards and specifications and co....