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2016 (6) TMI 403 - AT - Central ExciseSSI Exemption - Clubbing of clearance of 3 manufacturing units - duty demand alongwith interest and equal amount of penalty - mis-utilisation of SSI benefit provided in Notification No.8/2001 (CE) dated 01.l03.2001, by not accounting for the clearance value of its other units M/s. Manish Garments and M/s.Manish Apparels in its books of accounts - Held that:- Adjudicating authority has not specified that out of the 3 appellants, who is the principal manufacturer and who are the dummy units of the principal manufacturer. In absence of clear specifications with regard to the principal manufacturer, in whose turn over, the clearances of dummy units have to included, it is not only difficult but imposible to recognise as to who is the principal manufacturer, on whom the duty liability can be fastened. The operative portion in the adjudication order fixing the liability for payment of duty and penalty by all the appellants, jointly and severally, clearly shows that the Revenue has recognised implicitly all the appellants as independent units. Hence, without categorically specifying or bifurcating as to who is the principal manufacturer and who are the dummy ones, floated with a view to conceal clearance of principal manufacturer, confirmation of duty demand will not stand for judicial scrutiny. The SSI exemption provided under Notification No.01.03.2001 cannot be denied on the ground that the said Notification specifies the manufacturer and not the manufacturers for the purpose of getting SSI benefit. Thus find support from the decision in the case of Shiva Exim Enterprises (2005 (2) TMI 294 - CESTAT, NEW DELHI ) cited by the ld. Advocate for the appellant, wherein it has been held by the Tribunal that clubbing of clearance of 2 Units can be ordered only if one unit is the principal unit while the other is a dummy one, which had been floated with a view to camouflage clearance of the principal unit. Though the Revenue has filed Civil Appeal against the decision of Tribunal in the case of Shiva Exim Enterprises (supra), the Hon'ble Supreme Court have dismissed the same holding the view taken by the Tribunal that there could not have been the clubbing of the two units. - Decided in favour of assessee.
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