TREADWELL RUBBERS Vs. COMMISSIONER OF C. EX., MANGALORE

JUDGEMENT

(1.) THESE appeals have been filed against Order -in -Original No. 15/2005 dated 6 -5 -2005 passed by the Commissioner of Central Excise, Mangalore.

(2.) THE impugned order has been passed consequent to CESTATs Final Order No. 84 to 88/2002 dated 23 -1 -2002 [2002 (141) E.L.T. 827 (Tribunal)], which remanded the case to the Original Authority with the following findings.

(3.) THE Adjudicating Authority has examined the issues after giving a personal hearing to the appellants. M/s. Treadwell Rubber has a proprietor Shri George Kurian. His wife Mrs. Annie George is the Proprietrise of M/s. Excel Tyres. She has given a General Power of Attorney in favour of her husband. The Adjudicating Authority has examined the question of clubbing of the clearances of the above two units in the light of Board Circular 6/92 dated 29 -5 -92. He has observed that the above mentioned circular does not cover the instant case where one proprietary unit is owned by the wife and the other proprietary unit is owned by her husband and the wife has executed a General Power of Attorney in favour of her husband to look after all the business activities of the units owned by her. The Commissioner has relied on the decision in Quality Steel Industries v. CCE - 1989 (43) E.L.T. 775 (T) wherein it has been held that clearances from both units are to be clubbed together for the purpose of Notification No. 80/80 -Central Excise, as the two units although registered separately would not be independent of each other, if the proprietor of one unit was the wife of the proprietor of another unit and had executed a Power of Attorney in favour of the husband. The above decision has been upheld by Apex Court in 1999 (107) E.L.T. A61 (S.C.). He has also relied on the decision in the case of CCE v. Paper Packing Industries -1988 (36) E.L.T. 340 (T), wherein it is held that when two wives had executed Power of Attorney in favour of their husbands and had no role to play in the business of the second firm, the clearances made by the second firm constituted by the two husbands and their wives were also for and on behalf of the first firm and were therefore to be clubbed.