ORDER :

1. The period involved in the present appeals for which the purported differential duty is demanded is August, 1996 to May, 1998.

2. It so happened that the respondent M/s. Gillette Diversified Operations Limited (hereinafter referred to as 'Gillette') entered into an agreement with another company incorporated under the Indian Companies Act and known as M/s. Rialto Enterprises (P) Limited (hereinafter referred to as 'Rialto'). As per the said agreement, an arrangement was agreed to between Gillette and Rialto whereby Rialto was to manufacture electric hair removers and electric dyers for Gillette. Rialto was a Small Scale Industrial unit (SSI unit) and in order to undertake this job, Rialto needed requisite machinery that was leased to it by M/s. Braun India Pvt. Limited (hereinafter referred to as 'Braun'). It is not in dispute that Rialto had been paying excise duty on the goods manufactured and cleared by it which were supplied to Gillette.

3. A show cause notice dated 31.08.2001 was issued by the Revenue/Appellant to Gillette alleging therein that it had connived with Rialto for evading central excise duty by indulging in under valuation of the excisable goods. The case s