- (1.) Respondent in C.A. No. 163 of 2003, viz., M/s. Electro Mechanical Engineering Corporation (for short, M/s. EMEC ) was engaged in the manufacture of iron and steel structure, steel doors, windows and structure etc. and is holder of Central Excise Registration No. 18/Alw-1/CH.73/94.
(2.) On a surprise visit undertaken by the officers of the Central Excise Division, Alwar, it was found that M/s. EMEC had floated two front units, viz., M/s. Cold Steel Corporation and M/s. Super Steel Corporation in order to fraudulently avail the benefit of SSI exemption under Notification No. 1/93-CE dated 28th February 1993 which exempted clearances of specified goods from payment of duty and concessional duty in the case of certain SSI units.
(3.) Since, according to the Revenue, floating of two front units by M/s. EMEC had resulted in short payment of duty, show cause notices were issued on 01st June 2000 to all the respondent-companies alleging that M/s. EMEC deliberately and wilfully suppressed the facts regarding its relationship with M/s. Cold Steel Corporation and M/s. Super Steel Corporation and demanding duty amounting to Rs. 23,04,034/- for the period from 1.5.1995 to 31.3.2000 invoking extended period of limitation under the proviso to Section 11A(1) of the Central Excise Act (for short, the Act ). They were also asked to show cause as to why penalty should not be imposed on them and interest under Section 11A(2) be not recovered and as to why the SSI exemption available under the aforementioned notification amended from time to time be not denied to them.;