9911796707
TMI Blog2005 (6) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. E/1335/2000 M/s. Excel Threads Industry OIO No. 15/2000 Dated 20-7-2000 CCE, (Adjn), Chennai 1. Rs. 35,07,318/- 2. Rs. 45,07,318/- 2. E/1336/2000 Sri. S.S. Sainudheen, Prop., Excel Thread Industry -do- -do- 1. Nil 2. Rs. 50,000/- 3. E/1337/2000 M/s. Success -do- -do- 1. Rs. 8,47,001/- 2. Rs. 10,97,001/- 4. E/1338/2000 Smt. Rose Ann Sapna -do- -do- 1. Nil 2. Rs. 50,000/- 5. E/1339/2000 M/s. Power -do- -do- 1. Rs. 18,912/- 2. Rs. 23,912/- 6. E/1340/2000 Sri Al-Hadaly A.Y, Prop. M/s. Power -do- -do- 1. Nil 2. Rs. 50,000/- 7. E/1341/2000 M/s. Golden Threads -do- -do- Rs. 2,50,000/- Redemption Fine 8. E/1342/2000 M/s. Thread Embayer, -do- -do- Rs. 1,00,000/- Redemption Fine 2. Sri. A.K.J. Nambiar, learned advocate appeared for the appellants and Sri L. Narasimhamurthy, learned SDR for the Revenue. 3. The learned advocate stated the following : A. M/s. Excel Thread Industry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by M/s. Saxon. At any rate, merely because thread was seized from the marketing unit, it cannot be said that the same was manufactured and cleared from M/s. Excel Thread Industry. I. The finding that the Brand Name "QUEEN" belonged to M/s. True Golden Threads (P) Limited Ltd. is wrong. Even assuming that to be so, M/s. True Golden Threads (P) Limited ceased to do business from 96 onwards. B. M/s. Success II. This unit is engaged in manufacture of poly sewing thread. Smt. Rose Ann Sapna is the Proprietrix of this unit. The product manufactured at Success is sold through a marketing unit namely, M/s. Thread Embayer whose proprietor is Sri Subair, the husband of Smt. Rose Ann Sapna. The raw materials required for manufacturing units at the appellant unit are - (a) Polyester (b) BOPP film, and (c) Packing Boxes/labels. III. Since the clearances from the unit for 97-98 and 98-99 were well below the limits prescribed in SSI Notification No. 1/93 (as amended) no Central Excise registration was taken by the unit. IV. The evidence gathered by the Department against the unit is mainly in the form of statements obtained from raw material suppliers and purchasers. Statements obtai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to state that the Department has not enquired as to whether the other brand names used by the appellant actually belonged to another person or not (cross examination of investigating officer). C. M/s. POWER X. This unit manufactures Polyester and Cotton sewing thread. The proprietor Sri. Al Hadaly is the brother-in-law of Sri Subair. The products manufactured by Power are marketed through Thread Embayer. The duty liability of Rs. 18,912/- has been confirmed against the appellant unit, only because the benefit of SSI Exemption notification was denied on the ground that the goods cleared borne the brand names belonging to others. It is submitted that the Department has not established through any evidence that the brand name belonged to any other person (cross-examination of Investigating Officer) XI. The learned advocate relied on the following case-laws. 1. 2005 (179) E.L.T. 336 - Sharadha Forge Pvt. Ltd. v. CCE, Rajkot 2. 2005 (182) E.L.T. 413 - Arch Pharmalabs Ltd. v. CCE, Hyderabad 3. 2005 (182) E.L.T. 465 - Lloyds Steel Industries Ltd. v. CCE, Nagpur 4. 2004 (168) E.L.T. 506 - CCE, Raipur v. C.M. Re-rollers Fabricators 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s such as M/s. National Threads, M/s. Indian thread emporium, M/s. Bhanu traders etc., have been used. In other words even though M/s. Success procured raw material the same would not be billed in their names. No sufficient reason is forthcoming from the appellants as to why they have been doing this. Further, M/s. Excel Thread Industry, Bangalore. M/s. Success had procured paper tube without accounts from M/s. Super Paper Products. Paper tubes had been procured from Masha enterprises in the name of M/s. India Threads. M/s. Success and M/s. Excel Thread industry had purchased wrappers for sewing threads from M/s. Roto Print, Thrissur and did not account such purchases. They had procured boxes for packing the sewing threads without accounts from M/s. Vinod Cine Printographs, Sivakasi. The units did not have any Central Excise Registration. They cleared the sewing threads to M/s. Golden Threads and M/s. Thread Embayer without accounting/without following the Central Excise procedures and without payment of duty. 7. The above firms are marketing firms owned by family members. They had also been keeping parallel invoices (Invoice books with same serial Nos.) and used the invoices w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into account the fact that the capacity of plant and machinery actually installed show that large scale production was very much possible. The sewing threads have been cleared by using parallel sets of invoices. In the SCN it is stated that even though there will be six clearances per week only one clearance would be shown in records. The finished goods were also supplied under bills of fictitious firms like Indian Thread Emporium, Indian Threads, Thread India and Thread Embayer, etc. This is evident from the sales invoices seized from customers in various parts of Kerala. In para 33 of his order the Commissioner has summed up the evidence of illicit clearances which is reproduced below : "To sum up, the investigating officers have unearthed lot of evidences to prove the modus-operandi adopted by M/s. Excel and Success in procuring raw materials in an unaccounted manner and in their unauthorized production and clandestine clearances. The said units had used the trading firms Golden Threads and Thread Embayer, which had otherwise acted as their sole distributors, as conduits to siphon off the clandestinely removed sewing threads. In view of the clear cut evidences adduced by the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
