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2016 (11) TMI 12 - AT - Central ExciseSSI Exemption - dummy units - clubbing of turnover of two units - Clandestine removal of goods - Held that: - turnover cannot be clubbed together and the two units cannot be treated as one unit merely because various factors such as related partners, common use of machines, labour , employees etc. unless there is a clear and specific evidence that there is mutuality of business interest between the two units and that both have interest in the business of each other or they have common funding and financial flow back - no such evidence indicating mutuality of interest in each other s business and financial flow back have been placed on record by the Department. It has been neither been alleged nor been established that any of the two firms was dummy /fagade or non-existent. On the contrary, it is a fact admitted by the department that both the units were found having independent manufacturing premises/factories during the search operations conducted by the Central Excise officers and were also found engaged in the manufacture of excisable goods as per panchnamas dated 17.11.2005 drawn on the spot. From the above facts stated, it is amply clear that both the firms were engaged in the manufacture of excisable goods namely plastic extrusion machines with the help of various machines installed in their respective premises and workers employed. I find that the most important aspect about having common funding and financial flow back is missing in the instant case which is very much necessary to club the clearances of the said units and deny them SSI exemption under Notification No.8/2003-CE dated 1.3.2003 as amended - demand of duty for the year 2004-05 also does not sustain. Consequently, demand of interest and imposition of penalty on both the appellants also do not sustain - appeal dismissed - decided against the Revenue.
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