FINAL ORDER NO’s. 50816-50818/2026

JUSTICE DILIP GUPTA:

1. Excise Appeal No. 51564 of 2025 has been filed by Sun Home Appliances Private Limited¹1. the appellant to assail that portion of the order dated 31.01.2025 passed by the Additional Director General (Adjudication)²2. the Additional Director General that, after denying exemption claimed by the appellant on the area based exemption under Notification No. 50/2003-C.E. dated 10.06.2003³3. the Exemption Notification, confirms the demand of central excise duty with interest and penalty after invoking the extended period of limitation contemplated under section 11A(4) of the Central Excise Act, 1944⁴4. the Central Excise Act.

2. Excise Appeal No. 50862 of 2025 has been filed by Jasraaj Singh Kalra, Managing Director of the appellant against that portion of the order 31.01.2025 passed by the Additional Director General that imposes a penalty of Rs. 2 crores upon him under rule 26 of the Central Excise Rules, 2002⁵5. the Central Excise Rules.

3. Excise Appeal No. 50861 of 2025 has been filed by Sarabjit Singh Kalra, Proprietor, Noble Industries that imposes a penalty of Rs. 5 crores upon him under rule 26 of the Central Excise Rules.

4. The appellant is inter alia engaged in the manufacture and clearance of washing machines and LED television sets⁶6. the products of ‘Haier’, ‘BPL’ and ‘Daenyx’ brands. It was initially set up as a partnership firm in the name of M/s. Sun Industries. With effect from 26.08.2019, the appellant was incorporated as a private limited company in the name of Sun Home Appliances Private Limited from 31.08.2015 to 30.06.2017.

5. M/s. Om Sai Enterprises, located at Part of Khasra No. 45, Village Jamalpur Khurd, F-83, Bahadrabad Industrial Area, Haridwar⁷7. Om Sai was initially engaged in the manufacture of footwear and leather accessories and was clearing such goods without payment of duty by availing the benefit of the Exemption Notification for a period of ten years from 29.03.2010. Om Sai had filed a declaration with District Industries Centre, Directorate of Industries and Commerce, Roorkee⁸8. DIC in March 2010 along with all the necessary documents and Acknowledgement in Form-496.

6. After some point of time, Om Sai considered it viable to manufacture some other products. Accordingly, on 01.05.2015, Om Sai informed the Sales Tax Department of the State of Uttarakhand regarding the addition of new line of electrical products, namely, light-emitting diode television (LED TV), washing machine, and air conditioner⁹9. the new products. The requisite approval was given by the department in R-29 receipt.

7. Om Sai also filed a declaration with DIC, by letter dated 10.05.2015, along with a Form in Part-II regarding the addition of new products. The DIC also acknowledged by providing Form-447 dated 12.05.2015.

8. Om Sai also filed a declaration with the jurisdictional Central Excise Department, by a letter dated 11.05.2015 addressed to the Assistant Commissioner, Customs and Central Excise, Haridwar, regarding the addition of new products and for availing the benefit of area-based exemption on the clearances. Acknowledgement was given by the Central Excise Department on 12.05.2015.

9. It is claimed that the manufacture of new products was started by Om Sai and the new products were cleared by Om Sai from June 2015 onwards. The clearances were made to M/s Amba Electronics¹⁰10. Amba Electronics and M/s Taneja Electronics¹¹11. Taneja Electronics through Invoice No. 0001 dated 26.06.2015 and Invoice No. 0002 dated 26.06.2015. Subsequent clearances were also made to other buyers. Om Sai also availed the benefit of area-based exemption in terms of the Exemption Notification in respect of the new products also.

10. Subsequently, Om Sai, by a letter dated 13.07.2015, sought permission from the DIC for shifting its factory premises from the location where it was operating, i.e., F-83, Bahadrabad Industrial Area, Haridwar to the ne