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TMI Blog2007 (1) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... t instance. Accordingly, we are not in agreement with the findings given by the authorities either in enhancing the penalty or in ordering for confiscation of plant and machinery since plant and machinery were not ordered for confiscation in the original order. As regards clubbing of clearances, we are of the view that strict guidelines should be followed as per Board Circular Section 37B. In the view we have taken, we are remanding the matter to the concerned Adjudicating Authority to examine the matter afresh on taking into consideration of the pleas made by the party with reference to the clubbing of clearances and the direction of the Tribunal as well as the guidelines issued under Section 37B while passing the order. Accordingly, he may pass an order on providing an opportunity to the party. Thus, these appeals are allowed by way of remand. The party is at liberty to raise all the connected pleas at the time of re-adjudication proceedings. Thus these appeals are disposed of in the above terms." 3. The Adjudicating Authority has examined the issues after giving a personal hearing to the appellants. M/s. Treadwell Rubber has a proprietor Shri George Kurian. His wife Mrs. Ann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unted in Shri George Kurain's account thereby proving cross-funding/financial flow back/interlacing of funds, between M/s. Excel Tyres and M/s. Treadwell Rubber. Referring to the Orders-in-Original 8/91 and 40/96 passed by the previous Commissioners and also the Show Cause Notice, he has stated that each of the above infractions are supported by accurate corroborate evidences. With regard to clandestine removal the appellant relied on a large number of case laws, however, the Commissioner in Para 24.8 of the order has distinguished those cases and stated that in the present case there is ample documentary evidence for purchase of carbon black under fictitious names, undervaluation, etc. 3.2 With regard to the quantification of the production, the Commissioner has discussed the formula recovered from Shri George Kurian during investigation, the one based on M/s. Hi-Tech Polymers, Mangalore and the formula based on Rubber Board's letter. Out of the three formulae, the formula given by the Rubber Board gives the least production. As per the Rubber Board formula, for every one kg of carbon black, the tread rubber produced comes to 3.22 kg. He has also observed that the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mi Narayan, learned advocate appeared for the appellants urged the following points. (i) The Commissioner has taken Rubber Board's formula. The appellants refute his finding that George Kurian agreed to the formula of Rubber Board for the reason that the said formula applies to synthetic rubber (Cisamer). The appellant never purchased a single consignment of cisamer. Hence, the formula adopted is not acceptable. (ii) To manufacture rubber several raw materials are required. The principal raw material is carbon black. The department has not conducted any experiment with regard to consumption of carbon black vis-a-vis the formula adopted by the George Kurian. Therefore, the production of tread rubber arrived at by the Adjudicating Authority is not acceptable. (iii) The following reasons have been given to hold that Treadwell Rubber (TR) is not an independent unit. (a) Same production supervisor looking after the production facilities of TR and ETRP. (b) Common workers for both units. (c) TR not in possession of complete machinery for the manufacture of tread rubber and utilizes the machinery of ETRP for manufacture of the final product. (d) Trusting the brand name EXCEL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 11A is not available. (ix) The Adjudicating Authority has staled that the case of Geeta Valves Engg. (P) Ltd. v. CCE - 1996 (87) E.L.T. 672 (Tri.) is not applicable. This is not correct. The appellant has taken the contention that the clubbing of clearances and denying SSI exemption on the ground that the workers are common to both the units, which are interrelated family units, is dealt with in Geetha Valves case (supra). The ratio of the decision in that case is clearly applicable to the present case. 6. The learned JCDR reiterated the impugned Order-in-Original. 7. We have gone through the record of case carefully. This is for the third time that this case is coming up before the Tribunal. We find that the Adjudicating Authority has rightly decided the issues in accordance with the remand order dated 23-1-2002 of the Tribunal. After examining the Board's guidelines and several case laws, he has come to the conclusion that the clearances of M/s. Treadwell Rubbers and M/s. Excel Tyres Rubber Products should be clubbed. Shri George Kurian is the proprietor of one unit and Smt. Annie George is the proprietrix of another unit. They are husband and wife. Smt. A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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