2001 (10) TMI 419 - AT - Central Excise

Summary

Issues:
1. Whether M/s. Juicy Beverages P. Ltd. is an independent unit.
2. Whether the unit is entitled to the benefit of Notification No. 175/86-C.E., dated 11-3-86.

Analysis:

Issue 1:
The appellants, engaged in the manufacture of sweetened flavoured aerated water, argued that they are an independent SSI Unit with separate certificates and licenses. They contended that they operate in exclusive premises and conduct manufacturing processes independently. The appellants presented evidence to support their claim that they should be considered an independent unit. However, both the Assistant Collector and the Collector (Appeals) held that M/s. Juicy Beverages P. Ltd. is not an independent unit as they share premises with Chandigarh Bottling Company. The appellate tribunal noted that the authorities below had combined the clearances of both entities without properly considering the corporate structure and relationship between them. The tribunal emphasized the need to lift the corporate veil to determine the true nature of the relationship between the appellants and Chandigarh Bottling Company.

Issue 2:
Regarding the entitlement to the benefit of Notification No. 175/86-C.E., the appellants argued that they should not be denied the exemption based on the clearances of other brands from different factories, including Chandigarh Bottling Company. They contended that if the clearances were attributed to Chandigarh Bottling Company, then the demand for duty should not be directed against them as a separate incorporated company. The tribunal found that a clear determination of the relationship between the appellants and Chandigarh Bottling Company was necessary before deciding on the entitlement to the exemption. As a result, the tribunal decided to remand the case to the lower authorities for a fresh examination, emphasizing the importance of following the principles of natural justice in the adjudication process.

In conclusion, the appellate tribunal allowed the appeals by remanding the case for a fresh de novo adjudication to properly analyze the relationship between M/s. Juicy Beverages P. Ltd. and Chandigarh Bottling Company, and to determine the appellants' eligibility for the benefit of Notification No. 175/86-C.E.