KUMARAN IMPLEMENTS Vs. COMMISSIONER OF CENTRAL EXCISE, CALICUT

JUDGEMENT

(1.) THE adjudicating authority has confirmed a duty demand of Rs. 4,22,013/ - together with interest under the proviso to Section 11A(1) of the Central Excise Act, 1944 read with Rule 9(2) of the Central Excise Rules against M/s. Kumaran Implements by holding that they were the real manufacturers of agricultural implements cleared by them and by M/s. Sree Sastha Industries, and imposed penalty of amount equal to duty upon them. He has also confiscated agricultural implements and dies seized from the premises of Sree Sastha Industries on 28 -7 -1997 bearing the brand name Kumaran, with option to redeem the same on payment of a fine of Rs. 2,500/ - and ordered confiscation of land, building, plant, machinery etc. of both Kumaran Implements and Sree Sastha Industries, with option to redeem them on payment of a fine of Rs. 10,000/ -.

(2.) THE case of the department is that both units were functioning as one unit, and a separate entity was created only with an intention of enjoying the benefit of SSI exemption. In other words, it is the case of the department that value of clearances has been fragmented so as to wrongfully claim the benefit of SSI exemption.

(3.) WE have heard both sides.