MANJEET SINGH Vs. COMMISSIONER OF C. EX., BANGALORE

JUDGEMENT

(1.) THESE appeals are against a common order passed by the Collector of Central Excise, Bangalore and are being dealt with by this common order.

(2.) PURSUANT to certain intelligence gathered (sic) the officers of Directorate General of Anti Evasion alongwith Bangalore Central Excise Officers conducted certain inquiries and Show Cause Notice was issued as it appeared that M/s. Tripta Udyog, Patel Puttaiah Industrial Estate, I Main Road, Deepanjali Nagar, Bangalore - 26, have contravened the provisions of Rule 9(1), 52A, 53, 173B, 173C, 173E, 173G, 174 (read with Section 6 of Central Excise and Salt Act, 1944) and 226 of Central Excise Rules, 1944 in as much as they have manufactured washing machines of the brand name MAURYA falling under sub -heading 8450 of Central Excise Tariff Act, 1985 (earlier under T.I. 33C of erstwhile Central Excise Tariff) during the period from September 1984 to February 1988 without making proper and correct declaration to the department and without obtaining a Central Excise licence and have clandestinely cleared the same without cover of proper Central Excise documents and without payment of Central Excise duty. It appears that the washing machines manufactured in the said premises have been fragmented and cleared in the names of the units namely M/s. Raja Enterprises and M/s. Nitika Enterprises by wrongly availing the benefit of exemption under Notfn. No. 83/83, dated 1 -3 -1983 and 85/85, dtd. 17 -3 -1985 and Notfn. No. 175/86, dated 1 -3 -1986 to which they are not entitled to. It appears the said M/s. Raja Enterprises and M/s. Nitika Enterprises have no independent premises, plant and machinery for manufacturing washing machines, but appears to have cleared the washing machines manufactured and cleared by M/s. Tripta Udyog from the premises situated at Patel Puttaiah Industrial Estate, I Main Road, Deepanjali Nagar, Bangalore -26. It further appears that the washing machines so manufactured and cleared in different names have been grossly undervalued and sold through closely related and connected marketing companies at much higher prices than the prices at which they have been cleared under the invoices of M/s. Tripta Udyog, M/s. Raja Enterprises and M/s. Nitika Enterprises. The total value of washing machines manufactured and cleared under the name of M/s. Raja Enterprises and M/s. Tripta Udyog during the years 84 -85 to 87 -88 is Rs. 74,51,580.48. The total value of washing machines manufactured and cleared in the name of M/s. Nitika Enterprises during the years 1984 -85 to 87 -88 is Rs. 21,18,984/ -. The total Central Excise duty liable to be paid on the above said goods is Rs. 7,14,452.91 (Vide brief facts in annexure enclosed).

(3.) THE Commissioner after considering the replies permitting cross -examination concluded that the charges as made in the Show Cause Notice are true and he ordered : -