COMMISSIONER, CENTRAL EXCISE COMMISSIONERATE Vs. DEORA ENGINEERING WORKS

JUDGEMENT

(1.) The facts in epitome, culminating in the commencement of, relevant for disposal of the present appeal filed by the revenue and emanating from the record, is that the respondent-assessee M/s Deora Engineering Works (for brevity "the assessee") was engaged in manufacture of parts and wire stitching machines. Acting on the casual information, the Excise Officers visited the factory premises of the assessee and noticed that it (assessee) was using the brand name of "Dominant" while clearing the goods. During the course of search/inspection of the premises, it revealed that one more manufacturing unit, namely, M/s Prominent Engineering Works, was also engaged in the manufacture and clearance of the same goods under the same brand name of "Dominant". The statement of Santokh Singh, partner of the firm, was recorded. He stated that they started manufacturing the goods in 1988 and had not crossed SSI exemption slabs till date. They are regularly filing the declarations under Rule 174 of Central Excise Rules, 1944 (for short "the Rules"). It was admitted that the goods manufactured by the assessee's firm and M/s Prominent Engineering Works bear the same brand name of "Dominant".

(2.) Sequelly, the factory premises of M/s Prominent Engineering Works were also searched and statement of Davinder Singh son of Santokh Singh, partner was recorded. During the course of inquiry, it revealed that both the firms are manufacturing/clearing the products by the same brand name of "Dominant" in the same premises, having common management. Therefore, a show cause notice dated 18.6.1998 was issued, as to why the central excise duty alongwith interest be not recovered, penalty be not imposed and the stitching machines of the same brand name be not seized.

(3.) Subsequently, in pursuance of show cause notice, a corrigendum dated 29.9.1999 was also issued to the assessee for clubbing the clearance of the goods on the ground that both the units belong to same persons and they had common machinery, staff and office premises etc.