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TMI Blog2009 (8) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... issuance of show cause notice, which culminated into the impugned order passed by Original Adjudicating Authority confirming the duty demand along with confirmation of interest and imposition of penalty of identical amount. Appeal against the above order did not succeed before the Commissioner (Appeals). Held that- if appellants would have cleared such branded products on full payment of duty instead of availing concessional rate of duty, they would have entitled to more clearances of their own products at concessional rates, which they had cleared on full rate of duty after crossing the exemption limit of Rs.one crore. As such, we agree with the appellants that by adopting such route they have ended up paying more duty than what was requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31-1-2001, along with filing of classification declaration, in terms of Rule 173B of Central Excise Rules, 1944. 3. During the relevant period the appellant availed the benefit of small scale exemption Notification in respect of their goods as also the tooth paste carrying the brand name 'Fresh Moments', upto the value of Rs.One crore and there-after started paying the duty at full rates in respect of their own manufactured goods as also on 'Fresh Moments' tooth paste, manufacture under the contract. 4. The appellant's factory was visited by the officer in August 2002, who conducted investigations and found that since the tooth paste carrying the brand name of 'Fresh Moments' was under the contract with M/s. Modicare Limited, who were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntent to evade payment of duty. Secondly, the appellants have contended that they had availed concessional rate of duty as available in terms of small scale Notification upto clearance value of Rs.one crore including the clearance of 'Fresh Moments' tooth pastes. Thereafter, they started paying full rate of duty in respect of their own products as also on the clearance of 'Fresh Moments'. If the duty on manufacture and clearance of 'Fresh Moments' tooth paste has to be confirmed now on the ground that concessional rate was not available, the clearance value of the same is not required to be taken into consideration while computing the total clearance value of Rs.one crore. In such a scenario, the assessee was entitled to clear their own g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indicative that the goods were not being manufactured on their own behalf. If the same were being manufactured on contract basis, the brand name 'Fresh Moments' is also to be held belonging to the person for whom the goods are being manufactured under contract. The appellant had disclosed the brand name 'Fresh Moments' in the said letter. If the Revenue was entertaining any doubt, it was their duty to seek clarification from the appellants. The appellant having intimated the manufacture of the goods under a contract and having disclosed the brand name 'Fresh Moments', cannot be held to have suppressed any fact with mala fide intention. The disclosure in the said letter may not be loud and clear enough but nevertheless, the said disclosure t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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