DUJODWALA INDUSTRIES Vs. CCE

JUDGEMENT

(1.) In these twelve appeals, filed against Order -in Original No. 25/90 dated 6.6.1990 passed by the Commissioner, Central Excise. Order -in -Appeal Nos. 431 to 434 dated 22.4.1991 and Order -in -Appeal Nos. 1166 -1167/91 dated 29.11.1991, the common issues involved are whether the value of clearances of Excisable goods cleared by M/s. Dujodwala Industries, M/s. Dujodwala Udyog Ltd. and M/s. Rasin and Terpene Industries are to be clubbed for the purpose of extending the benefit of Small Scale Exemption, whether the goods are chargeable to Central Excise duty, whether the assessable value of the goods has to be determined on the basis of Depot Sale prices, whether the demand is time barred and whether demand of duty can be confirmed against the units held to be dummy units.

(2.) Shri A.K. Jain learned Advocate, submitted that M/s. Dujodwala Industries (DI is short) is a partnership firm manufacturing rosin products, terpene chemicals, camphor and sodium acetate; that they came into existence in 1969 and have been duly licensed by the Central Excise department and are also duly registered as a SSI units with Director of Industries, Haryana; that M/s. Resin and Terpene Industries (RTI in short) came into existence in 1979 as a partnership firm; that they are also registered as a SSI unit and have filed declaration with the Excise Department on 7.3.1980; that M/s. Dujodwala Udyog Pvt. Ltd. (DUL in short) was set up in 1983 and L 4 Licence was obtained by them in February, 1983;

(3.) The learned Advocate submitted that the Appellants were purchasing duty paid Turpentine and rosin which, under the old Central Excise Tariff were classifiable under Tariff Item 68 and under sub -Heading 3801.19 and 3801.90 of the Schedule to the Central Excise Tariff respectively; that their final products Rosin Derivatives and Turpentine Derivatives fall under Tariff Item 15A(1) of the Old Central Excise Tariff and sub -Heading 3801.19 and 3801.90 respectively of the present Tariff. He concedes that there cannot be a case of non -excisability of their final products under the Old Tariff but contended that as the raw materials and final products both fall under the same Headings of the New Central Excise Tariff, no further excise duty is chargeable on these products; that they are undertaking only some chemical processes and as the raw materials and the finished goods both fall within the same sub -Heading without any distinct tariff description, the goods are not exigible to excise duty; that the Tribunal has already given a finding in their favour in their own matters vide Final Order No. 1076 -1077/98 -C dated 30.10.1998. He also relied upon the following decisions: