9911796707
TMI Blog1985 (5) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... acturing unit having their factory and office in Room No. 418, Hind Rajasthan Building, Bombay. Between 12 to 16th June, the Central Excise officers of Inspection Group, Bombay, visited the premises of M/s. Intima Wear, Room No. 422, Hind Rajasthan Building, Bombay. The said inspection group found 30 pcs of ready-made garments of registered brand name, namely 'AROMA'. It is also alleged that they found some incriminating entries in the private accounts. The Department's case is that the appellants (M/s. Aroma Apparels and M/s. Intima Wear, though apparently two different legal entities, in actual practice, it was not so. The Department rely on certain circumstances and also entries in the accounts in support of their contention. According t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r's orders demanding the duty and penalty were confirmed. 4. Shri Subhedar, Advocate, appearing for the appellants urged that the appellants had nothing to do with M/s. Intima Wear. The appellants never exceeded the exemption limit provided under the notification 150 of 71. The bank transactions were verified and there was no payment by appellants to M/s. Intima Wear. The income-tax and sales-tax assessments for the firms were distinct and different. He urged that there was a withdrawal of duty on ready-made garments under Notification 86 of 76 dated 16-3-1976. There was no licensing control also. Hence there was no necessity for the appellants to create a bogus firm to cover their clearances. The two firms had separate bank accounts. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth the parties. The Department contends that M/s. Intima Wear is a dummy company and the appellants are the manufacturers for the purpose of excise levy. It is well settled that unless there is adequate proof that the other firm is a dummy concern or a camouflage for the real manufacturer, one cannot act on mere suspicion or surmise. It is in evidence that the appellants firm has been in existence from 1966. M/s. Intima Wear was started on 2-1-1970 and we have a certificate of the bank to the effect that the accounts were opened on 2-1-1970. The proprietorix of M/s. Intima Wear and the owner of the appellants' firm are not shown to be related in any way. The appellants have separate bank account. The trade mark certificate has been issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve not been recorded to show that the appellants had transferred these identical garments. The presence of labels of Aroma will not conclusively show that the appellants have created the other concern. In any event, the presence of the garments manufactured by the appellants in Intima Wear cannot be treated as a circumstance against the appellants, as such garments are available in the open market. M/s. Intima Wear has not been hired by the appellants to carry on their manufacture. Shri Subhedar rightly pointed out that the value of the goods was also not very significant. 9. We must point out that both these firms have been under the Central Excise control from 1971 to March 1976 when the commodity was fully exempted. During this per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lained that the goods sent under the bill were refused by Intima Wear and were accepted by Aroma. In this case also, Ram Chand was not examined to rebut this explanation. 13. Emphasis has been laid on invoice No. 472 issued by the Transport Company. It is urged that the entries in the ledger showed that the amount was actually paid by Intima Wear though the invoice stood in the name of the appellants. But this circumstance has been sufficiently explained by the appellants that the transport company had by mistake shown the appellants in the invoice and they have clarified it by their reply to the letter dated 8-4-1977. The department has also acted on a comparative statement of raw materials and electricity consumption to arrive at a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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