VARSHA INDUSTRIES Vs. COMMISSIONER OF C. EX., AHMEDABAD

JUDGEMENT

(1.) BOTH the appeals are being disposed off by a common order as they arise out of the same impugned order passed by authorities below. I have heard Shri V.B. Joshi, learned advocate, appearing for the appellant and Shri R.S. Srova, learned DR, appearing for the Revenue.

(2.) ƒAs per facts on record M/s. Varsha Industries is engaged in the manufacture of lift winding machines falling under Chapter 84 of the Central Excise Tariff Act, 1985 and were availing the benefit of value based exemption under the SSI exemption scheme. Their factory was visited by the officers on 6 -6 -2005 and it was noticed that castings of the lift winding machines were procured and subjected to machining process in the factory. The inputs, viz. Gear boxes, were sent to M/s. Cama Gears Manufacturing Co., 21, Dharnidhar Industrial Estate, Raikhal, Ahmedabad for the process of lapping. The same was received back after undertaking of process of lapping. The assembling of the machines was under taken in the factory premises of the appellant. The packing and dispatch of these machines were also made from the factory premises of the said appellant.

(3.) SEARCH was also carried out in the premises of M/s. Cama Gears on 6 -6 -2005 under Panchnama, and it was revealed that M/s. Cama Gears did not have the facility to manufacture the machines. The only process relating to the machines carried out in the factory premises of Cama Gears was that they received Gear boxes from the appellant which were returned after being subjected to the process of lapping. The entire assembling, packing and dispatch of the machines was carried out from the premises of the appellant. The clearances of the machines shown in the records of Cama Gears appeared to be untrue and all such clearances had actually taken place from the factory of the appellant.