COMMISSIONER OF CENTRAL EXCISE Vs. XENON, ADITYAPUR

JUDGEMENT

(1.) This is a Tax Case under Section 35H(1) of the Central Excise Act, 1944. Following are the grounds of reference :

(2.) M/s Xenon, Adityapur, Jamshedpur (hereinafter referred to as the said assessee) is a partnership firm and are engaged in the manufacturing of Motor Vehicles Parts falling under Chapter heading no.87.08 of the CETA'85, as per the specifications of M/s TELCO Ltd., Jamshedpur. The assessee is availing the SSI exemption in terms of the Norfn. No.175/86-CE dt. 01.03.86 (as amended). The factory of the assessee is adjacent to the M/s Samarth Engg. Co Pvt. Ltd., Adityapur, Jamshedpur (hereinafter referred to as M/s SECO) who is also availing SSI exemption under 175/86-CE dt. 01.03.86 (as amended) and manufacturing the same goods that the assessee is manufacturing.

(3.) On visit of the factory premises by the officers of the Preventive unit of Central Excise Commissionerate, Jamshedpur it was found that the unit of the assessee was formed by dubiously and artificially fragmenting M/s SECO with a view to misutilize the benefits of aforesaid SSI exemption notification.