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TMI Blog2008 (2) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... aram, Vice-President and Shri K.K. Agarwal, Member (T) [Order per : Jyoti Balasundaram, Vice-President]. - The respondents (hereinafter referred to as "PPI") are manufacturers of rubber rolls and pipes for rice mills using identical inputs/raw materials for the manufacture of the said goods. The common partner in both the units was one Mrs. S.A. Kantak, Mr. A.R. Kantak was the partner of the respondent firm, while Mr. M.B. Wagh, his brother-in-law, was the partner of M/s. Parkman Shivdurga Enterprises (hereinafter referred to as "PSDE") which, the department alleged, had been created as a dummy by PPI for the purpose of availment of inadmissible SSI exemption separately by suppressing the fact of non-production of goods by PSDE. The b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machine purchased by PSDE was used by PPI; (c) Insurance was common for both the units; (d) Mr. Wagh did joint marketing of the goods of both the units, orders of PSDE were accepted by Mr. Kantak of PPI, who was also involved in the activities of PSDE and payments were released by both Mr. Wagh and Mr. Kantak; (e) PPI had given unsecured loan of Rs. 2 lakhs and the loan was also not shown in the balance sheet of PSDE; (f) Raw material of PSDE was directly received by PPI from the suppliers and finished products were processed and directly dispatched to customers of PSDE and it was only on paper that the raw material was sent for job work to PPI and credit was taken by PSDE; (g) Mr. Kantak had stated that after the manufacture, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inding that the machinery found installed in the premises of PSDE such as hydraulic press lathe machine etc. were lying idle for a number of years, we find that there is no basis for such finding. Although it is admitted that on the day of visit to the factory of PSDE by Central Excise officers, the machinery installed therein was not in operation, this by itself is not enough to hold that the machinery had not been used for years together by PSDE. The providing of an interest free loan to PSDE by one of the partners of PPI will not affect the independent existence of PSDE in the light of the fact that PSDE had its own factory and machinery. The issue of brand name was not raised either in the show cause notice or in the order-in-original a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e respondents have filed electricity installation and monthly bills to show consumption of units within the premises of PSDE and they have also filed extracts of month-wise salary register. They have also intimated the department of removal of raw materials to job workers (PPI). On record are also freight payment vouchers for removal of raw material/finished goods from the premises of PSDE to PPI. Bills have been filed to show purchase of machinery and spare parts by the respondents who have also furnished details of term loan sanctioned by Saraswat Co-op. Bank Ltd. on hypothecation of plant and machinery, furniture and fixtures, tools etc. Both PSDE and PPI have paid duty on crossing the initial SSI exemption limit during the period from 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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