Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (10) TMI 570 - AT - Central ExciseSSI Exemption - Clubbing of clearances - dummy units - benefit of exemption under N/N. 8/2003 - Held that: - evidence found that there is a financial flow back between the two units and both the units are controlled by the same person. There is a specific evidence of financial flow from one entity to another entity and both the entities are being controlled by two Directors viz., S/Shri V.S. Manohar and V.U. Thambi. If the corporate veil is lifted then it can be revealed that both the entities are one and the same and therefore there is nothing wrong in clubbing the clearances of both the units for the purpose of computation of aggregate value of clearances for SSI exemption. The decision in the case of Parle Bisleri (P) Ltd. Versus CCCE [2010 (12) TMI 26 - Supreme Court of India] relied upon where it was held that where the companies are indeed interdependent and possibly even related through financial control and management, the value of clearances has to be clubbed together in the interests of justice. Invocation of extended period of limitation - Held that: - extended period has been rightly invoked by the Department as the Director has concealed the true facts from the Department with intent to evade payment of duty and the said Director whose statement was recorded and he has admitted the factum of flow of funds between the two units is personally responsible and the penalty has rightly been imposed on him. Demand of duty, interest and penalty confirmed - appeal rejected - decided against assessee.
|