A.R. Tiwari, J.

1. An erstwhile partnership firm M/s Rubber Products claims that it is now a proprietary concern owning a factory at village Sejvaya, District Dhar for manufacture of Rubber foam sheets and plywood. M/s. Dayal Laminates of Makai Nagia, manufacturer of paper surfaced Hard board and decorative laminate is said to be a private limited Company registered under the Companies Act. The department felt that M/s. Rubber Products an alleged proprietary concern owned by one R.N. Kapur is nothing but a front company i.e. M/s. Dayal Laminates (P) Ltd. owned by Sahebdass and Gurucharandas and that martrecious (sic) segregation has been designed in a ruse to earn eligibility of the exemption from payment of duty in terms of the Notification No. 175/86 dated 1-3-1986.

2. Pursuant to the report of the intelligence, the Central Excise Officers conducted simultaneous raid on 9th and 10th October, 1991 on the alleged two units and seized documents. After show clause notice and order of adjudication dated 16-7-1993 (Annexure P/14) is passed by respondent No. 3 imposing duty of Rs. 20,09487.1 and Rs. 73,631.65 under Section 9(2) of Central Excise Rules, 1944 read with Section 11A of C