TaxTMI 
TaxTMI 
2009 (2) TMI 216
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..... 3. The relevant facts, in brief, are as follows : (a) M/s. Woodburn Chemicals Pvt. Ltd. (WCPL) with Shri D.S. Sodhi as Managing Director and a partnership firm by name, S.C. Manufacturer (SCM) with Shri D.S. Sodhi as one of the partners, and a proprietary concern by name Sphenax Industries (India) (SII) with Shri D.S. Sodhi as proprietor are situated in adjacent plots and all were managed by Shri D.S. Sodhi. They were manufacturing basic chromium sulphate and by-product, by name, sodium sulphate. "WPCL" is a brand name belonging to Woodburn Chemicals Pvt. Ltd. and admittedly, the other two firms were also using the brand name till 31-3-94 and all the three units were availing the benefit of small scale exemption separately. (b) On 7-9-....
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....L were manufactured only by WCPL. The old bags which contained inscription "manufactured by SCM" and "Manufactured by SII" were mistakenly used by the illiterate labourers. No other evidences have been relied upon to support the allegation that SCM and SII have manufactured any goods with the brand name WCPL and cleared. He also submits that even for period after date of visit that is 7-9-94, the demand has been raised treating the clearances effected from SII and SCM as if containing the brand name WCPL without seeking any clarification from the representatives of these firms. 4.2 On the issue of shortage of soda ash, he submits that for manufacture of the chemicals raw materials like chromium ore - 46% and lime 26% were required in addit....
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....scapable conclusion that the goods have been manufactured and cleared, therefore, duty demand on this count should also be upheld. He also submits that WCPL is liable to penalty. 6.1 We have carefully considered the submissions from both sides. The issues which arose in de novo proceedings before the Commissioner were as follows : "(i) Whether M/s. SCM and M/s. SII have wrongly availed the benefit of Notification No. 1/93, dated 28-3-93 during 1994-95 as they were using brand-name of another person (WCPL) and have thus evaded Central Excise duty amounting to Rs. 8,41,764/- and Rs. 9,24,584/- respectively? (ii) Whether the quantities of soda ash found short at the time of physical stock verification on 7-9-94 at M/s. WCPL, M/s. SCM and M/....
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....31-3-95 are based only on presence of a few bags, out of 300 bags seized from the truck and a few bags found in the finishing hall of WCPL. The explanation of the appellants are that they had stock of printed bags which were used prior to 31-3-94 and some of them have been mistakenly used by the illiterate workers. It is noticed that 370 bags were in the finishing hall of WCPL and the bags which were yet to be stitched and some of them contained the inscription that the same are manufactured by SCM and SII. This evidence, in our opinion, does not support the case of the Department. This supports the claim by the appellants that these goods were manufactured in WCPL only, even though inscription in some bags indicated as if manufactured by S....