COMMISSIONER OF CENTRAL EXCISE Vs. GRASIM INDUSTRIES LTD

JUDGEMENT

(1.) THESE appeals are filed against the Judgment of the Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT) dated 14th October, 1999. The respondents are a'subsidiary of one M/s Grasim Industries Ltd. On the bags of cement manufactured by them the respondents use the following words: "Manufactured by Dharani Cements Ltd. A Subsidiary of Grasim Industries' Ltd."

(2.) THE Tribunal has, following the earlier Judgments of the Tribunal in the cases of Chemguard Coatings Pvt. Ltd. v. Commissioner of Central Excise, Chennai and Nippa Chemicals (Pvt.) Ltd. v. Collector of Central Excise, Madras, and a Judgment of this Court in the case of Astra Pharmaceuticals (P) Ltd. v. Collector of Central Excise, Chandigarh, held that the benefit of Notification No. 5/98 CE dated 2nd June, 1998 is not lost by the respondents because they show on their product the name of the holding company, namely M/s. Grasim Industries Ltd.

(3.) THE Commissioner, by his Order dated 19th May, 1999, held that the respondents were not entitled to the benefit of the Notification. It was held that they were liable to pay a differential duty of Rs. 47,74,961/- and a penalty of Rs. 10,00,000/- under Rule 173Q of the Central Excise Rule, 1944. THE respondents filed an appeal before the CEGAT which, as stated above, has been allowed on the basis of Judgments referred to earlier.