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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 ..... a 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 of all the appellants and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his submission that the case of the Revenue is that the appellant M/s Fine is manufacturing the goods at Phagwara, who is availing the benefit of SSI exemption and clearing the same on the invoices of M/s Fewa who is availing the exemption under Notification No. 50/2003-CE dt. 10.06.2003. The allegation is on the basis of assumption/presumption as M/s Fewa is an independent unit and having the capacity to manufacture. During the course of investigation itself, various machineries were found installed at premises of M/s Fewa and finished goods were also found there. It was also submitted that the goods manufactured by M/s Fewa and M/s Fine are different and the same have been cleared to the Company for further sale; therefore, the M/s Fine i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Fine. No variation in the stock of finished goods were found during the course of verification and both the units were found working at the time of physical verification on 10.03.2010. The Company out of the seized goods has purchased the goods valued at Rs. 52,79,914 from M/s Fewa, which was manufactured in their premises and the same were found recorded in the statutory records by the visiting officers. The appellants also submitted the details of the purchase of rest of goods but the same has not been examined, therefore, the demand of Rs. 5,87,376/- on seized goods at the premises of the Company is not sustainable, accordingly no redemption fine and penalty is imposable as goods are held not liable for confiscation. 9. A demand of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 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 Rs. 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 Fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that they supplied goods only to the extent mentioned on the bill and never supplied extra quantity. They never cleared/sold the goods without invoice or against cash payment to M/s Fine or M/s Fewa. We find that the said demand is on the basis of suspicion and no corroborative evidence of clandestine manufacture, transport, flow back, electricity consumption have been brought on records. Therefore, the said demand is not sustainable. 14. A demand of Rs. 72,72,294/- has been confirmed against M/s Fine on the ground that M/s Fine is manufacturing the goods and clearing the same in the name of M/s Fewa to avail SSI exemption. We find that M/s Fine and M/s Fewa are two independent units and are located in the state of Punjab and the state ..... X X X X Extracts X X X X X X X X Extracts X X X X
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