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        Location/Site Name       of          the Products
                      unit/division              manufactured

        Pune              (Century        Enka POY. PFY. NIC
                          Ltd.)

        Mahad             Konkan     Synthetic POY. PFY
                          fibres;

        Bharuch           Rajshree Polyfil        Chips POY

The corporate office for all the three location is at Pune site, the production and marketing of the products manufactured at various location is generally under the control of the Managers/CEOs who are in charge of each site location. This was a natural fallout of the fact that each site/location was separately 41 E/86129,86130,86131,86132,86153, 86154,86155,86156,86157/2014 developed at different points of time. However, we now find that this is an inefficient way of managing our business. The market for POY and the market for value added products is different and different strategies are required to address the market. Production and planning have to be altered in the light of what the market requires. It has therefore been decided to revamp the traditionally followed management structure and replace the same with concept of Product Group management which is widely practiced by many good companies. Under the Concept, it is the product which is the main theme and not the location/site.

Implementing the Product Group concept at Mahad site was becoming difficult since the very few number of High Speed Spinning (USS) Machines resulted in a limited capacity for producing POY. However, to ensure smooth changeover to Product Group concept, initially an exception was made so that the HSS machine and its product POY was continued to be managed by the Product Group - Textile Yarn. Due to difficulties, we have not been successful in achieving the basic objective of the Product Group concept in the true sense. As, by now the product groups are functioning smoothly, in order to conclude the changeover and to further consolidate the new management structure, it has now been decided to hand over the total 42 E/86129,86130,86131,86132,86153, 86154,86155,86156,86157/2014 control/management of the HSS machines at Mahad to the Product Group - POY. This will not only enable the Product Group to function more effectively but also give much needed focus to the two separate product groups at Mahad site. This will also in the long run, enable the two product groups to consolidate, expand and grow in their respective areas. For achieving this to the best possible extent and to give greater flexibility and more freedom in decision making, manufacturing as well as marketing of its products and to have stricter cost controls, it has been decided to completely segregate these two units by a suitable compound as well as a separate In/Out gate with independent administrative setup.

49 E/86129,86130,86131,86132,86153, 86154,86155,86156,86157/2014 50.2 Thus, from the above, I find that filing of application dated 16.03.2000 is a mere attempt to avail undue benefit of the notification 6/2000-CE dated 01.03.2000, despite of the knowledge that the composite unit still continue to exist and being operated under the single and overall management of M/s. CEL for all the purpose. Thus, noticees at Sr. No. (5) to (9) are aware of the facts of the case and have activity participated in bifurcation of existing registered premises of noticee company at Mahad, and by these acts and by claiming the benefit of Notification No. 6/2000 C. Ex., dated. 1.3.2000, which they knew that it was not due to them, had willfully mis-declared the facts with in intent to evade payment & duty by the noticee company and as such rendered themselves liable for penal action under Rule 209 (A) of Central Excise Rules, 1944 and Rule 26 of CER, 2002 as applicable during the respective period as proposed in the respective SCNs."