BHUSHAN KUMAR Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The appellants filed these appeals against a common adjudication order passed by the Commissioner of Central Excise. In the impugned order, the duty of Rs. 13,58,945/ - was confirmed and penalty of equal amount was also imposed on M/s. Super Steel Industries on the ground that they had manufactured and cleared diesel engines without payment duty. The penalties were also imposed on the various dealers of M/s. Super Steel Industries on the ground that they had connived with M/s. Super Steel Industries to evade payment of duty.

(2.) The brief facts of the case are that the appellants are engaged in the manufacture of diesel engines and diesel generator sets and they were manufacturing same under various brand name such as Super Master, Bharat Jyoti, H.M.T. and Usha Star and also under their own brand name. The factory premises of M/s. Super Steel Industries, M/s. Azad Engineering Works and M/s. Single Machinery Store were searched on 6 -3 -98 and various documents were taken into possession by the Revenue Authority. Against M/s. Azad Engineering Works and their dealers separate show cause notices were issued.

(3.) In the present proceedings, the statement of various dealers were recorded by the Revenue Authority to the effect that they had received diesel engines of various brand names manufactured by M/s. Super Steel Industries under the cover of invoices where it was mentioned as 'loose kits'. These diesel engines supplied to various farmers against loan given by various co -operative agricultural banks. The charge of clandestine manufacture and clearance of diesel engines had been based on the ground that as per documents furnished by the various co -operative agricultural banks, the diesel engines financed by them at the request of various farmers, were much more than the diesel engines shown to have manufactured by M/s. Super Steel Industries in their statutory records hence there was suppression of actual manufacture of branded engines.