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TMI Blog2019 (4) TMI 928X X X X Extracts X X X X X X X X Extracts X X X X ..... sis of packing material recovered from the Company alleging that M/s Fine has clandestine removed the gold series of switches to the Company on the basis of packing material - HELD THAT:- Sh. Harjinder Singh was cross examined and denied his statement and submitted that the same has been dictated to him and no other corroborative evidence has been produced by the Revenue in support of the allegation - demand not sustainable. Demand of ₹ 17,43,264/- has been raised on MCB/Isolators - it was alleged that MCB/Isolators manufactured by M/s Fine were sent to M/s Fewa for their clearance - HELD THAT:- M/s Fewa purchased MCB/Isolators parts/components thereto from M/s Shiva Electrical Corporation, Gagret, for which copies of invoices were produced that the authority below has not given any credence to the said documents and held that MCB/Isolators manufactured by M/s Fine were sent to M/s Fewa for their clearance and M/s Fewa returned the same to M/s Fine. As the demands have been confirmed without examining the invoices issued by M/s Shiva Electrical Corporation, Gagret. Further, no variations of stock were found - demand not sustainable. Demand of ₹ 9,55,550/- has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 285/2019 - Dated:- 21-2-2019 - Mr. Ashok Jindal, Member (Judicial) And Mr. Bijay Kumar, Member (Technical) Present for the Appellant(s): Mr. Sudhir Malhotra, Advocate Present for the Respondent(s): Mr. Vijay Gupta, A.R. Per Ashok Jindal : The appellants are in appeal against the impugned order. 2. The facts of the case are that the appellant no.3 M/s Fine Switchgears (hereinafter referred to as M/s Fine ) is located at 40, Industrial Area, Phagwara and the appellant no.2 M/s Fewa Electrical Corporation (hereinafter referred to as M/s Fewa ) is located at Krishna Nagar, Hoshiarpur road, Gagret (H.P.). Both are manufacturing the electrical switches and accessories and the appellant no.1 M/s Fine Switches P Ltd (hereinafter referred to as Company ) located at 39, Industrial Area, Phagwara is a trading unit. M/s Fine was holding Central Excise registration and working under Notification No. 8/2003-CE dt. 01.03.2003. M/s Fewa was working under area based exemption Notification No. 50/2003-CE dt. 10.06.2003. The items manufactured by M/s Fewa were invariably not manufactured by M/s Fine. On 10.03.2010, a search was conducted by the DGCEI at business premises ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AR reiterated the impugned order. 5. Heard the parties and considered the submissions. 6. On going through arguments advanced before us and perusal of the records, we find that the whole case of the Revenue is that M/s Fine is not entitled to avail the benefit of SSI exemption on the ground that M/s Fine is clearing the goods to the Company under the invoices of M/s Fewa, who is availing the area based exemption under Notification No. 50/2003 dt. 10.06.2003, therefore, M/s Fine is not entitled to avail the benefit under exemption Notification and is liable to pay the duty. 7. On going through the records placed before us, the duty has been demanded as per the chart below: Description Duty demanded Breakup of duty at column 2 Goods cleared by M/s Fine Switchgears invoices by M/s Fewa ₹ 36,17,432/- ₹ 5,87,376/- ₹ 3,31,242/- ₹ 17,43,264/- ₹ 9,55,550/- Goods received by M/s Fine Switches Pvt Ltd from M/s Fine Switchgears of gold series ₹ 2,04,043/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding in MCB/Isolators. M/s Fewa purchased MCB/Isolators parts/components thereto from M/s Shiva Electrical Corporation, Gagret, for which copies of invoices were produced that the authority below has not given any credence to the said documents and held that MCB/Isolators manufactured by M/s Fine were sent to M/s Fewa for their clearance and M/s Fewa returned the same to M/s Fine. As the demands have been confirmed without examining the invoices issued by M/s Shiva Electrical Corporation, Gagret. Further, no variations of stock were found. In that circumstance, the demand is not sustainable in the absence of any corroborative evidence. 11. A demand of ₹ 9,55,550/- has been confirmed alleging that M/s Fewa sent the raw material and packed material to M/s Fine, whereas M/s Fewa has raised the invoices in respect of the finished goods. We find that the raw material to manufacture finished goods was not available in the state of Himachal Pradesh and the same was purchased from outside the state. It was alleged that M/s Fewa used to send raw material to M/s Fine and manufacturing of finished goods was done by M/s Fine whereas the billing of the same was done by M/s Fewa. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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