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2013 (9) TMI 650 - AT - Central ExciseSSI Exemption - clubbing of turnover - Family members have several SSI units - common directors in private limited company and common partners in firm - Revenue was of the view that KI was the main unit having the required infrastructure for manufacturing and maintenance of accounts and all the other firms/companies were created for the purpose of showing them as independent manufacturing units which they were not to derive maximum benefit from SSI exemption notification - Held that:- It was KMPL for whom goods were manufactured by all the units and KMPL did control the supply of raw materials, quality of raw materials, payment for raw materials and job charges and receipt of finished goods from them and sale thereof whereas no records/evidences have been put forth to show that it was KI in such a position - Revenue had not been able to make out a case that KI had to be treated as the manufacturer and the clearances of other units have to be clubbed and KI had to be held as liable to pay duty on all the goods manufactured by all the concerned units. Receipt of Raw Materials - It was the claim of the Revenue that all the units had a common head office, there was neither allegation nor finding that other units were nonexistent or were located in the same premises - Therefore the claim that all the raw materials were received in the premises of KI does not emerge from the facts. Costing Job Work Charges - There was no relationship between the two - If KI was supposed to be treated as the manufacturer and clubbing was to be done - department had to show that other units did not had the facility and were controlled by the two partners of KI i.e. Shri Chimanbhai Nanjibhai Hapani and Ms. Sonalben B. Hapani - Neither of the two partners were shown to be involved in determination of job work charges or in control of supply of raw materials. Accounting Methods - Quality of Goods Manufactured - Each unit had been identified as separate, separate registration certificates had been issued by the department -Just because accounting policy was determined and methods followed were same by all the units, clubbing cannot take place - ll units was controlled by Shri Manoj Kacha, it was submitted by the ld. counsel that Shri Manoj Kacha is an employee of KMPL and therefore quality control by him is natural and is in the fitness of things. The demand for duty from KI in respect of goods manufactured by all the units cannot be sustained and accordingly was set aside - the penalties imposed on various appellants cannot be sustained – Decided in favor of Assesse.
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