2006 (7) TMI 462

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..... pondent. [Order per : P.G. Chacko, Member (J)]. The appellants claim to be traders dealing in towels and bed sheets. During the period of dispute (2000-01 to 2003-04), they got towels and bed sheets manufactured by powerloom weavers out of yarn supplied by them. These towels and bed sheets were received in two streams by the appellants. In one stream, these were stitched at all the four .....

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..... those of the appellants in Appeal Nos. 145 and 146/2000 and denied SSI benefit to the so-called manufacturers comprised in each pair. Learned Commissioner also imposed penalties equal to duty on the assessees under Section 11AC of the Central Excise Act. 2. After examining the records and hearing both sides, we find that learned Commissioner has considered the appellants to be manufacturers o .....

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..... question of their getting registered with the department. The department has not found any such facility with the appellants during the period of dispute and, in the circumstances, the aforesaid notifications had no application to the appellants. Ownership of the goods was immaterial to exigibility to duty of excise. As the subject goods were undisputedly falling under Chapter 63 of the CETA Sched .....

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..... true the definition of manufacturer in a manner that would make the appellants manufacturers of towels and bed sheets. 4. After giving careful consideration to the submissions, we have found prima facie case, in these matters, against the demand of duty raised by the Commissioner on the appellants. No manufacturing activity was found with the appellants, nor was there even an allegation in the .....

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..... ring facility. The other findings recorded by learned Commissioner are also based on apparently erroneous observations. The assessee seem to have a good case on the strength of the Hon ble Supreme Court s landmark judgments in the case of Ujagar Prints. In the Order-in-Appeal cited by learned Counsel, the appellate Commissioner has apparently taken a correct view on the facts similar to the facts .....

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