CCE, ALLAHABAD Vs. SURCOAT PAINTS (P) LTD

JUDGEMENT

(1.) This appeal has been filed by the Revenue against the Judgment and Order, dated, 10th October, 2001 passed by the Customs, Excise & Gold (Control) Appellate Tribunal, (in short "Tribunal") New Delhi in Final Order No. 142/01-C, in Appeal No. E/369/96-C whereby the Respondent was held eligible to avail of the benefit of the small scale exemption notification. Brief facts of the case are as under:

(2.) There is another Company by the name of M/s Singhal Paints Pvt. Ltd. which is engaged in manufacturing paints and varnishes. M/s Singhal Paints Pvt. Ltd. was also a registered small scale industry.

(3.) The Commissioner, Central Excise, Allahabad, issued a Show Cause Notice dated, 28th February, 1995 to the Respondent denying it the benefit of Notification No. 175/86 on the ground that in terms of Notification No. SO-232(E) dated, 2nd April, 1991 issued under Section 11B of the Industries (Development and Regulation) Act, 1951, (for short "IDR Act"), the Respondent company would come under the category of being "subsidiary to any other undertaking" and shall cease to be a small scale industry. M/s Surcoat Paints (Pvt.) Ltd. and M/s Singhal Paints (Pvt.) Ltd. are being controlled by the same management and are to be considered as owned by the same owner. M/s Surcoat Paints (Pvt.) Ltd. thus ceases to become a small scale undertaking and thus ineligible to avail benefit under Notification No. 175/86-CE dated, 1st March, 1986. Since, M/s Surcoat Paints come under the category of being "owned or controlled" by M/s Singhal Paints (Pvt.) Ltd., it was not eligible for availing of the benefit of Notification No. 175-86 CE and 1/93/CE.