Per V.K. Agrawal :

M/s. S.S. Pharmaceuticals (P) Ltd. have filed the appeal against the order in original No. 33/90 dt. 27.3.91 passed by the Additional Collector, Central Excise.

2. Briefly stated the facts are that the Appellants manufactured Patent or Proprietory Medicine and availed the benefit of Small Scale Exemption Notification. Enquiry made by the Central Excise Officers revealed that the Appellants had sold their entire products through their related persons, namely M/s. Kharbanda Drug Corporation and M/s. Poonam & Co. Shri Sanjeev Kharbanda and Mrs. Kamla Kumari, Partners of M/s. Kharbanda Drug Corporation were son and wife respectively of Shri S.S. Kharbanda, Managing Director of the Appellants; that Shri Raju Kharbanda and Mrs. Nidhi Kharbanda, partners of M/s. Poonam & Co. were son and daughter in law respectively of S.S. Kharbanda. In addition both these units utilised the business premises of the Appellants for which hardly any rent was paid by them. They also utilised the telephone and telegraph code of the appellants without paying any charges. Two show cause notices dated 11.1.90 for demanding duty Rs. 1,10,251.11ps. for the period from 1986-87 and 1987-88 and