2000 (8) TMI 763 - AT - Central Excise

Summary

Issues involved:
1. Duty demand and penalty imposition on M/s. Kinotone for manufacturing Cinema Projector Equipment under SSI exemption Notification.
2. Imposition of penalty on M/s. Cine Lamp for acquiring and transporting excisable goods.

Detailed Analysis:
1. The case involved a duty demand of Rs. 52,63,999.43 on Cinema Projector Equipment manufactured by M/s. Kinotone under SSI exemption Notifications. The issue was whether the exemption was valid since M/s. Kinotone was allegedly inter-linked with other companies owned by the same family. The Adjudicating Authority found that all three units were interconnected and controlled by the same family, sharing resources and having mutual business interests. The Collector upheld the duty demand and penalties on M/s. Kinotone, citing evidence of shared ownership, machinery, and financial transactions among the companies. The Tribunal agreed with the Collector's findings, upholding the duty demand and penalties on M/s. Kinotone.

2. Another issue was the penalty imposed on M/s. Cine Lamp for involvement in acquiring and transporting excisable goods. The Collector relied on evidence from a transport company indicating that M/s. Cine Lamp was associated with acquiring and transporting Cinema projector equipment, which they knew were liable to confiscation. M/s. Cine Lamp did not refute this claim. The Tribunal found that the ingredients of Rule 209A were applicable to M/s. Cine Lamp, upholding the penalty imposed on them. Ultimately, the Tribunal upheld the impugned order, confirming the duty demand and penalties on M/s. Kinotone and M/s. Cine Lamp, respectively.