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2013 (9) TMI 213 - AT - Central ExciseSSI Exemption - Clubbing of two units for the Central Excise taxation purpose - two units owned by Husband and wife respectively - M/s R.R. Iron Foundry and M/s Sharad Industries had common office – During the search of M/s R.R. Foundry, Agra certain doors interconnected with an adjacent unit working in the name and style of M/s Sharad Industries, Agra – Held that:- It is not the Revenue’s case that two unit owned by Smt Kamlesh Gupta and her husband Shri Avdesh Kumar Gupta not complete units having all the necessary machines and infrastructure for manufacture of their final product. Both the units have separate Sale Tax Registration, Industries Registration, Income Tax Registration, Electricity Connection, Telephone Connection & ESI Registration etc. Merely because there is a door between the two units and power of attorney stand given to her husband to look after the job of her unit, by itself cannot be held to be a ground for holding both the units as one - Husband and wife are entitled do their own business and if the husband is looking after the business of the wife that will not make the unit owned by the wife as a dummy unit. The prime requirement, for clubbing the clearance of two units is not having complete independent machinery and infrastructure to manufacture the goods. If both the units are complete by itself, capable of manufacturing the goods without any help from the other unit, it has to be held that both the units are independent units - Financial flow back an financial intertwining between the two units is the main reason for reflecting upon the fact of their being independent or not – There are various decisions which upholds the abovementioned legal position s.a. the case of M/s. Renu Tandon Vs. Union of India, [1992 (1) TMI 126 - HIGH COURT OF JUDICATURE FOR RAJASTHAN]; M/s. Electro Mechanical Engg. Corporation Vs. CCE, Jaipur 2003M/s. Electro Mechanical Engg. Corporation Vs. CCE, Jaipur [2002(5)TMI 186 – CEGAT, NEW DELHI] etc. – Appeal rejected – Decided against the Revenue.
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