RAMMAICA (INDIA) LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) M/s. Rammaica (India) Limited is a manufacturer of decorative laminates. Bulk of the sales of the said goods are made through three dealers:

(2.) It is the contention of the Revenue that these marketing outfits are related to the manufacturing concern. The appellant company seemed to have adopted a modus operandi by which it was selling 'A' grade laminated sheets as 'C' or 'D' grade to the first named marketing company who in turn sold them as 'A' grade sheets to its dealers. Further, it is also alleged that the appellant was under stating the value of sheets laminated while selling them to the related buyers (Marketing companies) thereby evading duty.

(3.) M/s. RMIL is a Limited company. Its Chairman is one Mr. Ramabatar Jhunjhunwala. It has three directors, two of them his relatives and one an outsider. It has a network of branches at Mumbai, Calcutta, Delhi, Bangalore, Madras etc. Goods manufactured by the appellant are first transported to various branches; the latter then sell them to the branches of marketing company, M/s. HLPL. The appellant sells his goods directly to M/s. HLPL who in turn sells them to various dealers in Mumbai. Similarly, the marketing outfit at Pune, M/s. RLPL, who gets the goods directly from the manufacturer sells them in whole of Maharashtra and upcountry. All the three marketing companies have Directors who are related to the Chairman of the appellant company as brought out in Para 4(f) of the impugned order.