K.R. BALACHANDRAN Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) Both these appeals arise from a common Order -in -Original No. 3/2001, dated 31 -8 -2001 by which the Commissioner of Central Excise, Chennai has confirmed the demands raised in the show cause notice against Meera Industries to an extent indicated in the impugned order for the demands raised for the years 1995 -96 to 2000 -2001 in terms of Section 11A(2) of CE Act. A penalty under Section 11AC of the CE Act has also been imposed on the ground that the offence has been committed by them from 28 -9 -96 onwards. A penalty under Rule 173Q has also been imposed on Meera Industries for the offences committed by them till 27 -9 -96. A personal penalty of Rs. 2.00 lakhs has been imposed on Shri K.R. Balachandran, Partner of both Meera Industries and Rama Industries under Rule 209A of CE Rules. The seized goods were confiscated under Rules 173Q and released on payment of redemption fine of Rs. 4.4 lakhs, bank guarantee of Rs. 3.62 lakhs have been encashed and appropriated towards the redemption fine of confiscated goods. Plant and machinery have also been directed to be confiscated in respect of Meera Industries and Rama Industries under Rule 173Q and 209 of CE Rules. However, granting the appellant to redeem the same on payment of fine of Rs. 1 lakh. The allegation against the appellant is that they are manufacturers of the products of pressure pans, pressure cookers registered with the Central Excise department and were availing the benefit of SSI exemption under the said notification. They were fixing brand name "SEETHA". The firm comprised of partners of Mr. K.R. Balachandran and Mrs. B. Kousika w/o of Mr. K.R. Balachandran.

(2.) M/s. Rama Industries, another firm, which according to the appellant is an independent firm with separate constituents of partners comprising of Mr. K.R. Babu and Mrs. B. Nithya, w/o. Mr. K.R. Babu registered with the Central Excise department and manufacturing pans, pressure cookers with brand name of "RAMA" and availing benefit under SSI notification.

(3.) Two show cause notices were issued on 28 -12 -99 and 12 -6 -2000 for alleged offences committed by M/s. Meera Industries during the period, 1995 - 96 to 1999 -2000 invoking proviso to Section 11A(1) of CE Act.