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Showing contexts for: freezer in M/S Thermotech vs Cce, Delhi on 12 March, 2012Matching Fragments
(ii) confirmed duty of Rs.12,80,542.50 by denying the benefit of Notification No.75/87-CE, dtd. 01.03.87;
(iii) confirmed central excise duty of Rs.3,16,800/- on 24 air conditioners alleged cleared by the appellants on 27.02.92 without payment duty under Rule 9(2) of Central Excise Rules read with section 11A of the Act;
(iv) imposed penalty of Rs.77,95,808/- on M/s Flevel International under Rule 173Q of Central Excise Rules; and
(v) confiscated seized 60 air conditioners, 4 fans and 4 deep freezers with an redemption fine of Rs.1 lakh and on payment of central excise duty.
23. The said appellant M/s Flevel International is engaged in the manufacture of air conditioners, washing machine, geysers, heat convectors. Their factory was visited by the officers on 28.2.92 who found 36 numbers of air conditioners totally valued at Rs.7,92,000/- lying in the factory. In addition 281 compressors valued at Rs.47,77,000/- and four fan motors and four deep freezers were found in the factory. Inasmuch as the officers entertained a view that such 36 numbers of air conditioners have not been entered by the appellant in their RG-1 register, they were seized alongwith seizure of other goods found in the factory premises. Subsequently the residential premises of Shri Pradeep Khanna, Proprietor, M/s Thermoking and husband of of Ms. Neera Khanna, proprietor of M/s Flevel International were put to search and 24 numbers of air conditioners were seized from the said premises on the reasonable belief that the same were manufactured by the appellant and cleared clandestinely. However, it is seen that on subsequent production of records, 281 compressors detained on 28.2.92 were released by the department unconditionally.
25. On the above basis, show cause notice dt.26.8.92 was issued proposing confiscation of the 36 air conditioners valued at Rs.7,92,000/-, 4 fan motors valued at Rs.1600/- and 4 deep freezers valued at Rs.41,500/- on the ground that the same were not entered in the RG-1 register. 24 air conditioners recovered from the residential premises were also proposed to be confiscated alongwith confirmation of duty of Rs.3,16,800/-. The notice also proposed confirmation of duty of Rs.12,80,542.50 by denying the benefit of Notification No.75/87 on the ground that on clubbing the clearances of all the three units under the proprietorship of Smt.Neera Khanna, the same exceeded the eligibility criteria of the said notification, the demand of Rs.58,44,825/- was proposed to be confirmed for the period 1988-99 to 1989-90 on the allegation of clandestine removal of 606 air conditioners. The said notice culminated into an order passed by the Commissioner, confirming the demands, imposing penalties and confiscated seized goods as detained above.
29. As regards, 4 fan motors and 4 deep freezers, the appellants have taken a stand that the basement of the appellants factory was temporarily taken by M/s.Thermoking on rent and the said goods were manufactured on behalf of M/s.Thermoking, by a contractor. It is a fact that at the time of visit by the officers, a contractor, Devender Oberoi was found engaged in fabrication of deep freezers and the statement recorded on the spot revealed that he was working for M/s.Thermoking. The Commissioner has observed that no permission to shift factory premises temporarily to the basement of the factory of M/s.Flevel International was taken by M/s.Thermoking. We are of the view that the same may be reason for imposition of penalty for non obtaining permission but cannot lead to conclusion that said the deep freezers and fan motors were manufactured by the appellants. As such, we set aside the confiscation of the same.