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Ltd.2 and Ms. Mariamma R. Iyer3 against the imposition of penalty have also been dismissed.

2. Krishna Food is the appellant in Excise Appeal No. 52692 of 2019. It claims to be a contract manufacturing unit engaged in manufacturing biscuits for its principal Parle Biscuits, which is the appellant in Excise Appeal No. 52694 of 2019. Iyer is Vice

1. Krishna Food

2. Parle Biscuits

3. Iyer E/52692/2019, E/52693/2019 & E/52694/2019 President of Parle Biscuits and has filed Excise Appeal No. 52693 of 2019.

3. Krishna Food claims that it was authorised by Parle Biscuits to manufacture, on its behalf, "biscuits" and to comply on its behalf all the procedural formalities contemplated under the Central Excise Act, 19444 and the Rules framed thereunder in respect of the goods manufactured on behalf of Parle Biscuits and also to furnish information relating to the price at which Parle Biscuits would sell the said biscuits in order to enable the determination of the value of the said goods under section 4A of the Excise Act.

4. The inputs used for manufacture of the biscuits are supplied by Parle Biscuits which pays for the inputs but Krishna Food takes credit of the same and utilises the credit for payment of duty on the biscuits cleared on account of Parle Biscuits. Krishna Food also claims that it availed and utilised input services used in relation to the manufacture of biscuits for Parle Biscuits in accordance with the provision of the CENVAT Credit Rules 20045.

4. Excise Act

5. CENVAT Rules

6. Valuation Rules E/52692/2019, E/52693/2019 & E/52694/2019 has also been stated that various inputs services were procured by Parle Biscuits on payment of service tax. However, as biscuits were manufactured not only in the factories of Parle Biscuits, but also in the factories of other contract manufacturers, it was thought, as a business strategy, that advertisement, market research, sales promotion and marketing should be centralised and handled by the office of Parle Biscuits at Bahadurgarh. Such credit on input services attributable to the final product was distributed by Parle Biscuits on a pro-rata basis proportionate to the turnover of each unit between its own manufacturing plants and its contract manufacturing units, including Krishna Food, under rule 7(d) of the CENVAT Rules.