RAMOJI RAO Vs. COMMISSIONER OF C. EX., CHENNAI

JUDGEMENT

(1.) RAMOJI Film City (hereinafter referred to as RFC), is a project of one Shri Ramoji Rao, as Kartha of a Hindu Undivided Family of name and styled Sri Ramoji Rao -HUF (hereinafter referred to as HUF/RR -HUF), who is the appellant. This HUF owns several businesses identified with different names. The Show Cause Notice lists them out as M/s. Ushakiron Movies, Anajpur, Margadarshi Financiers, Margadarshi Computers, Priya Diary etc. Apart from the HUF -Units, Sri Ramoji Rao also heads various companies, which are part of his business group. These include M/s. Dolphin Hotels Ltd., M/s. Margadarshi Chit Funds Ltd., M/s. Ushodaya Enterprises Ltd. (Entertainment Division, Foods Division, Publications Division etc.) and M/s. Ushakiron Movies Ltd. etc. [Priya Foods Division of M/s. Ushodaya Enterprises Ltd., is a unit registered under Central Excise for manufacture of Priya brand pickles etc., and clearing the same on payment of duty].

(2.) RFC was set up as a one -stop centre for film -making, spread over a vast area of about 1,000 acres in Village Anajpur, Rangareddy District, Andhra Pradesh. The Film City consists of numerous locations and landscapes which were developed to facilitate and cater to the requirements of out -door and in -door film shooting and production thereof. Necessary equipments, laboratory, Preview theatre and star hotels to provide accommodation to the film -personnel are all made available/located within the RFC. RFC is claimed as a place where a film -maker could walk in with a crew and walk out with a completed film. It is admittedly not a distinct legal entity, as in the case of a firm, company etc. Various group companies and units held by the HUF/RR -HUF have portions within the total area in the RFC. The HUF units situated within the RFC and relevant for the purpose of this case are hereinafter referred to as divisions. Each of these divisions is engaged in the specialized areas providing necessary support services for filmmaking. The Anti -evasion officers developed an intelligence and pursuant to that conducted an enquiry and issued Show Cause Notice dated. 16 -8 -99 which proposed : -

(3.) THE Commissioner after hearing the noticees ordered: -