9911796707
TMI Blog1999 (5) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the period 1988-89 & 1989-90 under Rule 9(2) of the C.E. Rules, 1944 read with proviso to Section 11A of the C.E. Act. A penalty of Rs. 8,000/- has also been imposed under Rule 173Q(1) of C.E. Rules. 2. He has also confirmed the duty demand of Rs. 31,049.38 on the item A.H.Bracket, flame guard & look washers manufactured & cleared during the period 1988-89 & 1989-90 from M/s. K.P. Associates, Bangalore under Rule 9(2) of C.E. Rules, 1944 read with proviso to Section 11A of C.E. Act besides penalty of Rs. 5000/- on this appellant. 3. Both the appellants were issued with common show cause notice No. C. No. V/74/15/90/91 C.I., dated 25-10-1991 alleging various contravention of Rules in manufacturing and clearing these items and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to make it a complete assembly part. The processes carried out by them on the item are not complete to make it a full part and in that condition it cannot be sold. They also contended that parts of pressure cookers are exempt under Notification No. 181/88 when used in the manufacture of pressure cookers by following the chapter X procedure. It is contended that even if this chapter X procedure is not followed, it is only a procedural violation and for such procedural violation substantive benefit of notification cannot be denied. They had also contended that valuation has not been correctly adopted as the Department has taken "cost sheets' of TTL for weight sleeves for the purpose of valuation which cannot be done as appellants only made j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contended that item in question is semi-finished product and it is dutiable. 8. On careful consideration of the submissions, we notice that the Addl. Collector had raised the issue and of clubbing of clearance of two units and after noting it that the units are not dummy ones, later proceeded to confirm the individual demands on independent units. In cases of clubbing, the grounds for clubbing are required to be disclosed and clubbing of clearances can be done only when the units are dummy ones or in case where there is financial flowback from each others unit. There is no allegation of financial flowback but only on the basis of units having common partners, the clubbing has been ordered. Even in that case, the Addl. Collector ought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be considered as item which is marketed and sold in the market. The item is a totally unfinished condition requiring several processes for its completion. The order is a non-speaking and this aspect having not been considered requires to be remanded for de novo consideration. The plea of the appellants that parts of pressure cookers are exempted by a Notification No. 181/88 has not been considered. In terms of the said notification the parts of pressure cookers are exempted and those parts comes under chapter X procedure. It is well laid down law that non-observance of chapter X procedure cannot be the ground for denying the substantive benefit of a notification. Be that as it may, such order which has not dealt with all the aspect req ..... X X X X Extracts X X X X X X X X Extracts X X X X
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