9911796707
TMI Blog2006 (4) TMI 366X X X X Extracts X X X X X X X X Extracts X X X X ..... in the manufacture of Hydrogen Gas falling under sub-heading 2804.29 of the Schedule to the Central Excise Tariff Act, 1985. It was alleged that they have floated three front companies namely M/s. Alfa Hi-tech Gases (P) Ltd., M/s. Ujala Gas and Chemicals Pvt. Ltd. and M/s. Zen Gas and Chemicals Pvt. Ltd. in the vicinity of their factory to compress and bottle the Hydrogen Gas purchased as a bye product by them during the manufacture of caustic soda with an intent to mis-use the SSI exemption in terms of Notification No. 8/2003-C.E., dated 1-3-2003 during the period from December, 2003 to December, 2004 by supplying Hydrogen Gas to front companies at a much lower rate than on which the hydrogen gas was sold by these companies to the customer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as in cylinders were the front companies of M/s. Lord Chloro Alkali Ltd. The lower authorities have given findings sufficient to hold that front companies were floated by M/s. Lord Chloro Alkali Ltd. It was also pointed out that earlier the Supreme Court in the case of Commissioner of Central Excise, New Delhi v. Modi Alkalies Chemicals Ltd. reported in [2004 (171) E.L.T. 155] had held that company manufacturing gas and sending it for bottling to nearby facilities and all companies having common staff and accounting, marketing and supervision and directors being the employees of the manufacturing company, SSI exemption is not available to the companies filling the hydrogen gas. It was stated that in the present case, the three front compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls and M/s. Zen Gas Chemicals are in the same premises floated by M/s. Modi Alkalies Chemicals by providing loans and financial assistance. The Commissioner has also given a finding that M/s. Lord Chloro Alkali cleared hydrogen gas to the front units at the rate of Rs. 0.50 to Rs. 1.50 per MT which in turn was sold by these companies at the rate of Rs. 5 to Rs. 15/- per MT by misusing SSI benefit as provided by Notification No. 8/2003-C.E., dated 1-3-2003 by M/s. MACL by floating three front companies located in one single premises separated from each other by brick walls. He therefore, did not find any reason to interfere with the order of original authority denying the benefit of SSI exemption to the concerned appellant by demanding t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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