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TMI Blog1986 (11) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd., were charged by the Central Excise with removing 193 man-cooler fans from their factory from 5-7-1967 to 10-6-1969 They engaged M/s. Flow Link Industries on contract to get piece rate jobs and supplied the raw materials to them for assembling electric fans according to their own specifications. M/s. S.F. India Limited were said to have held the goodwill and proprietary rights on the man-cooler fans. In the investigations, the Central Excise found that M/s. Suburban Industrial Works understood and engaged in the manufacture of electric fans from 5-7-1967 to 10-6-1969 and manufactured 193 man-cooler fans which were removed from the factory to M/s. Flow Link Industries for onward transmission to M/s. S.F. India Ltd. Neither M/s. S.F. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cording to the learned counsel, was. time-barred; the period was 5-7-1967 to 10-6-1969 when the notice was dated 21-1-1976. There had been correspondence with the Central Excise on their activities and they had told the Central Excise, about what they were doing and what they were going to do. 5. The fans are classifiable as industrial fans, because they are required to cool machines. 6. The learned counsel for the department, Mr. Verma said that Cibatul judgment is not applicable, because it concerned only the trade marks. The allegation here was that they got fans manufactured by a dummy party. He said that M/s. Flow Link Industries had been set up only as a shadow and served only as a dummy to cover up the true nature of the transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsaction were between one principal and another. 10. It is difficult for us to accept the explanation of the learned counsel for M/s. S.F. India Ltd. that the transaction between them and M/s. Suburban was on a principal to principal business. There is a good deal of mystery about how M/s. Suburban Industries Works were created. We read in the Collector's order that they did not even have a central excise licence and the flow of materials and finished goods between two or three parties has no rational explanation. We are still not clear what role M/s. Flow Link play in all this except to receive some material form M/s. S.F. India Ltd., forward them to M/s. Suburban Industries Works, receive the finished fans and then transmit them back to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith large displacements generally used it factories and similar establishments where large numbers of people work together, where heat gains are high because of machine proximity, congestion etc. etc. They are capable of keeping large numbers of workers in reasonable comfort not only by cooling but circulating the air much more efficiently than ordinary domestic fans. 12. The appellants say the demands were time-barred. But we have seen that the transactions were all fraudulent and were meant to conceal their true nature from the central excise in order to evade duty. The demands were made correctly under Rule 9(2). This plea is rejected. 13. We are not satisfied that we should interfere with the action of the Collector and the Board, and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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