9911796707
TMI Blog1999 (9) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. M/s. Century Trading Company was engaged in manufacturing Iron Clad Single Pole cutout classifiable under sub-heading 8536.00 of the CETA 1985. This unit was operating w.e.f 1978. Another unit situated in adjacent premises by the name M/s. Sanjay Electric Works were manufacturing similar goods from 1980. Neither unit was in possession of a Central Excise Licence/Registration. On a visit to the premises of the two units, the officers found that neither unit had sufficient machinery for manufacture of the goods and then machinery installed in both units required to manufacture such goods. The officers found that the two units were running with a common labour and the owners of the units were inter-related and that there was free fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elam Enterprises were fictitious. In his further statement, he admitted that M/s. R.D. Enterprises and M/s. Neela Enterprises were not in existence. Shri Satish Nayak was the common supervisor of M/s. C.T.C and M/s. SEW and he corroborated all the facts. He named Shri Sanjay Choksey as the only person to be involved with both the units. He also confirmed that M/s. R. D. Enterprises and M/s. Neelam Enterprises were fictitious entities. At the end of the investigations the SCNs were issued quantifying the duty short levied at Rs. 41,95,191/- and alleging liability to penalty from the units as well as the Partners and the Proprietors thereof. In the SCNs the entire liability for short levy etc. was pinned down to Shri Sanjay Choksey. Paragraph ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing the noticees the Commisioner of Central Excise, Mumbai VI passed the impugned order. In his order he confirmed the duty and levied penalty in the following words : (i) I confirm the demand of Central Excise duty amounting Rs. 41,95,191/- (Rs. Forty one lakh ninety five thousand one hundred ninety one only) on M/s. Century Trading Co. and M/s. Sanjay Electrical Works under the provisions of Section 11A (2) of the Central Excise, Act, 1944. The noticees may adjust Rs. 50,000/- paid by them against the Central Excise duty payable by them by virtue of this order. (ii) I impose a penalty of Rs. 41,951,191 (Rs. Forty one lakh ninety five thousand one hundred ninety one only) on M/s. Century Trading Co. and M/s. Sanjay Electrical Work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jected the contentions of the assessees on merits, but remitted the proceedings back to the Collector for recalculation, of the liabilities on each unit. This order of the Tribunal was challenged before the Supreme Court leading to the cited order. In the order the court observed as follows : 2. We find, after having heard ld. counsel, that it is necessary to remand the matters to the Collector to consider the entire case afresh. The principal factor that leads us to this conclusion is the finding of the Collector, upheld by the Tribunal, that the seven units which are the appellants before us are only a corporate facade although registered with the various authorities with a view to camouflage their actual identity and thereby avail of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould fully apply to the present dispute. 5. We have heard the submissions of Shri Deepak Kumar, SDR. 6. When the Commissioner finds that only one unit was the real manufacturer and the other units were merely shadows or dummies then he was required to confirm the demand against one unit and his confirming the demand against all units would amount to tacit recognition of their independent existence. The manner in which the ld. Commissioner has framed his order, would make it appear that he had recognised the independent existence of M/s. Century Trading Company and M/s. Sanjay Electrical Works. However in his deliberations he has established his conclusion in paragraph 69 of his order in the following words : 69. Hence, there is a suf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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