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2013 (4) TMI 57 - CESTAT NEW DELHISSI Exemption - dummy units - clubbing of clearance - allegation that two units are controlled by members of the same family. - The allegation against the entity and its M.D. is that a dummy company DSW has been floated for the purpose of tax evasion by showing part of the production in the name of DSW while both are controlled by one person. If the clearances of both entities are clubbed together during each year from 2005-2006 to 2009-2010 during each year DSD would not be eligible for SSI exemption. It is also alleged that in terms of appraisal report of income tax department in respect of these two entities on the basis of income disclosed during survey operation, during each of these years they had huge volume of unaccounted sales of excisable goods which had been cleared without payment of duty. Held that – the evidence and report submitted by income tax department shows that both the units were being controlled by single person, therefore, have to be treated as the factories owned by the same person for the purpose of determining their eligibility for SSI exemption. Therefore this is not the case for total waiver and it is directed to the entity to deposit an amount within a period of eight weeks from the date of this order. - stay granted partly.
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