2008 (1) TMI 154

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....t to cut their Jumbo paper reels and pack them as reams. They have used contract labourer for this cutting, slitting and packing operations and not their own employees for economy reasons. They had taken Central Excise licence for this. The department had tried to deny them the status of the manufacturer in 1997 and went into litigation to Commissioner (Appeals) and then to Tribunal culminating in a Tribunal's decision on 15-6-99 against the department. Accordingly, the department has issued them registration under Rule 174 in 1999. Again by taking the plea that the work of the cutting, slitting has been handed over to the job worker completely, the department has attempted to withdraw the Registration. It is not clear that why the show ....

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....opted. Whose. interest is sought to be protected. (c) It is seen from she facts which have been verified by the Range Superintendent that the unit is under the control of a Manager, process incharge and other administrative personnel are posted there are on pay roll of APPM. The security of the premises is also controlled by the APPM. The ownership of the raw material always remained with APPM. From the scheme of the things it is seen that APPM, by retaining with the Registration with themselves are perhaps seeking Sales Tax benefit and not Central Excise tax benefit. And we are getting higher revenue realization by the addition of value of cutting, slitting and packing to the value of duty paid reels. They are thus the real, defacto and....

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....als for charging of interest, imposition of penalties on the company as well as-its executives Shri Sudhir Bansali, Vice President of M/s. APPM and Shri P. K. Goswamee, Deputy Manager (Excise) of M/s. APPM and confiscation of the inputs/capital goods/land, buildings, plant and machinery etc, in both the cases on hand also fail. 67. In view of the foregoing, I do not find it necessary to go into the other aspects urged by the assessee and their learned Counsel. 68. Having regard to the facts and circumstances of the cases on hand, I pass the following order: ORDER I drop the proposals initiated against M/s. The Andhra Pradesh Paper Mills Ltd., Paper Cut to Size Unit (PCS Unit), as well as its officers vide the two show-cause noti....