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TMI Blog2016 (8) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... agem and lift the veil of structure in order to see what are the clear-cut facts; consequently the respondents cannot be allowed to escape, when they have not paid the dues of Central Excise. However, teir plea of giving benefit of Notification No.8/2003 C.E. dated 1.3.2003 deserves acceptance and the liability of payment of duty for the subject goods has to be computed after granting the benefit of Notification No.8/2003-C.E. - Decided partly in favor of assessee. - E/407/2007-DB - Final Order No. 20562/ 2016 - Dated:- 15-7-2016 - Shri S. S. Garg, Judicial Member And Shri Ashok K. Arya, Technical Member Mr. Mohammed Yousuf, Addl. Commissioner (AR) For the Appellant Shri Anil Kumar.B, Advocate AKB Associates Advocates Con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported in 1977 (1) E.L.T. (J168) (SC). The appellant inter alia says that Commissioner (A) in the impugned order has erred by not appreciating the facts on record. 3.1 It was also mentioned by the appellant that subsequently the respondents obtained Central Excise registration on 12.1.2006 and discharged their duty liability for the year 2005-06 and 2006-07. 4. The respondents viz., M/s. Pilani Envirotech Pvt. Ltd., Dharwad is represented by the learned advocate Mr. Anil Kumar. B of M/s. AKB Associates. Learned advocate has mainly argued that the respondents viz., Pilani Envirotech Pvt. Ltd. are traders and as per Ujagar Prints s case reported in 1988 (38) E.L.T. 535 (S.C.), they are not to be treated as manufacturer whereas job worke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n be demanded will beRs.1,18,92,118/- only and not the amount which has been alleged in Para 3 of the SCN. We rely on the case law in respect of Pattern Tex vs. CCE, Vadodara, 2001 (128) ELT 286 (Tri.-Mum) wherein it is held that, SSI exemption under Notification No.175/86-C.E. not deniable for failure to file declaration for exemption from registration under Rule 174A of Central Excise Rules, 1944 since the Notification contained no such condition Even a unit not registered with Directorate of Industries eligible to avail exemption upto ₹ 7.5 lakhs per annum or if he was availing exemption under earlier SSI Notification No.77/85-C.E. Section 5A(1) of Central Excise Act, 1994 [Paras 6,7] . 5. We have carefully considered all the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a Dummy unit operates from a residential place but claims itself as manufacturers of the impugned excisable goods in its delivery challans proves beyond doubt that both PEPL M/s. Ashok Bagi Associates are not distinct identities but one and the same concern having common interest i.e., manufacture and clearance of excisable goods by evading the duty of Central Excise duty payable thereon. This is further supported by the fact that the invoices of PEPL reflect the registered office and works as being located at HSG No.2/1, Gopalpur, Dharwad even though it is a residential premises and last but not the least, it was found on verification that the address of PEPL is nothing but the residential place of Shri Ashok Bagi, the so called job ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds that the respondents have declared themselves as manufacturers in various documents like delivery challan and invoices. Therefore by the facts on record, the respondents have not been able to prove that they and their job worker viz., M/s. Ashok Bagi and Associates are distinctly independent persons. From the facts on record, it is more a case of creating a structure and stratagem in order to evade the duties of Central Excise, which are due to national exchequer. 5.5 The learned advocate for the respondents also argues that Commissioner (A) is right in holding that the question of their relation or interconnectedness is not relevant as the issue of duty liability is approached from a wrong angle, when there is no evidence of departme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot escape from their liability of payment of Central Excise duty in this case, especially when for the purpose of Central Excise, there is a clear-cut finding that respondents and their job worker viz., M/s. Ashok Bagi and Associates are one and the same having common interest. When the respondents have structure and stratagem in order to evade payment of duty of Central Excise it becomes necessary to go beyond such a structure and stratagem and lift the veil of structure in order to see what are the clear-cut facts; consequently the respondents cannot be allowed to escape, when they have not paid the dues of Central Excise. 6.1 However, we find on record that assessee also submits that if they are held to be manufacturers, they are elig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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