COMMISSIONER OF CENTRAL EXCISE Vs. SIDDESH ENGINEERS

JUDGEMENT

(1.) THIS is an appeal filed, by Revenue.

(2.) BRIEF facts of the case are that respondents M/s. Siddhesh Engineers are engaged in manufacturing of Wiring Harness and Electrical Instrument Panels falling under Chapter Sub Heading 8537.00 of CETA, 1985. The respondents were claiming benefit of SSI exemption under Notification No. 1/93 which exempts clearance upto Rs. 30 lakhs from duty thereon. It is the respondents claim that they had manufactured and cleared excisable goods valued at Rs. 29,94,160/ - during the year 1994 -95 which were within exemption limit. On investigation it was revealed that the respondents got goods valued at Rs. 16,38,700/ - manufactured by an independent job worker by supplying raw materials and goods got manufactured by job worker were sold by the respondents to M/s. Kirloskar Oil Engine Ltd. under their own invoices. A show cause notice was therefore issued alleging that the goods got manufactured from job worker have to be treated as their own goods as they were supplied under their own invoice to M/s. Kirloskar Oil Engine Ltd. and Profit and Loss Account of the respondents also shows manufacturing sales were to the extent of Rs. 46,28,255/ - which included the above amount of 16,38,700/ -. The show cause notice was confirmed by Asst. Commissioner who demanded duty amounting to Rs. 1,85,917/ - with interest and also imposed penalty of equal amount under Section 11AC and confiscated land, property, machinery etc. under Rule 173Q(2) with option to redeem the same on Rs. 10,000/ -. On appeal the above order was set aside by Commissioner (Appeals) holding that the transaction between the job worker and the respondents were on principal to principal basis and therefore the goods manufactured by the job worker cannot be added to the respondents own clearances. It is against this order of Commissioner (Appeals) the Revenue has come up in appeal.

(3.) WE have perused the submission.