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TMI Blog1994 (8) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... ave, learned advocate stated that the show cause notice dated 5-7-1989 issued for the period 1984-85 to 18-8-1985 was dropped. He contended that under these circumstances, the show cause notice dated 5-7-1990 issued on the same facts was illegal. He submitted that the finding in the impugned order that all the 4 units were not separate legal entities and M/s. Usha Thermosets Pvt. Ltd. had created the other three dummy units with the mala fide intention of getting the benefit under Notification Nos. 175/86 and 85/85 was based on the finding that the units were situated in a common compound, they had common products having same grade number; common customers and common partners having financial interest in each other s business. He submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be attributed. He reiterated his stand that the appellants having complied with all the central excise formalities and no irregularity having been pointed out by the department at any stage, there could be no charge of suppression or wilful mis-statement against them. In support of his contention he cited the judgment of the Hon ble Supreme Court in the case of Padmini Products v. Collector of Central Excise reported in 1989 (43) E.L.T. 195 (SC). He contended that no reasons had been given by the Collector in support of his finding regarding suppression of facts. He argued that the demand confirmed by the Collector by invoking the extended period on the ground of suppression was not sustainable and for this reason the order imposing penal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30 of the impugned order and contended that the finding regarding suppression of fact was sustainable since the appellant had not disclosed the full facts regarding the funding of the concerned units. 4. It is seen that the Collector held that M/s. Usha Thermosets Pvt. Ltd. and the three other units, namely, Unibond Industries, Uniset Industries and Unique Resin Industries were not entitled to separately claim exemption from the payment of central excise duty under Notification No. 175/86-C.E., dated 1-3-1986 and 85/85, dated 17-3-1985 since M/s. Usha Thermosets Pvt. Ltd. had created the other three dummy units merely for the purpose of claiming the exemption under the said notification. The main considerations on the basis of which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also been pointed out that the constitution of the firms was disclosed to the Department while filing the A.L. 4 application for Central Excise Licence and also the changes in the constitution were also intimated from time to time. It has also been stated that the grade/code number of the products and also the names of their customers were clearly indicated in the copies of the gate passes which were regularly filed along with the R.T. 12 Returns and all the four units had filed classification lists which were duly approved by the Department. On these grounds, it has been contended that the Collector s finding regarding suppression of fact is erroneous and the confirmation of the demand by invoking the extended period beyond six months is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause notice dated 20-1-1982 issued to Apex Electricals was time-barred and without jurisdiction. According to him, the six processors had disclosed all the relevant facts to the Excise authorities in their applications made for seeking exemption. In March 1980 statements of the partners or owners of those processors were recorded by the Excise authorities. On 17-3-1980 statements of the Managing Director of Apex Electricals was also recorded. After gathering all the relevant facts, the concerned officer had granted exemption on 7-3-1980. Therefore, the show cause notice issued to Apex Electricals and the action taken pursuant thereto on the basis that relevant and material facts were suppressed by Apex Electricals and those six processors c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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