Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2009 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (6) TMI 918 - AT - Central ExciseSSI exemption - clubbing of clearances - mutuality of interest - Held that: - The appellants are two Private Limited Companies. They have separate existence. The investigation reveals that the clearances of one unit were done with the other and vice versa in order to remain with the exempted limit and thereby evading payment of Central Excise duty. If that is the case, the investigation ought to have decided the real clearances of each unit and demanded the duty accordingly in respect of each unit. However, in the present case, the duty has been demanded collectively from both the units. If the Department feels that out of the two units, one unit is dummy, then the dummy unit should have been identified. In that case, the value of the clearance of dummy unit could have been clubbed with the clearance of the real unit and duty demanded. This has not been done. Collective demand by clubbing clearances of two Private Limited Companies is not sustainable - appeal allowed - decided in favor of appellant.
|