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2017 (1) TMI 422 - AT - Central ExciseSSI exemption - clubbing of clearances - use of brand name of others - The appellant claims to be a job-worker for the second unit M/s Hem Agro Industries (trader) in addition to manufacturing tractor-trailors on its own account - Held that: - the two units have been artificially segregated to take advantage of the exemption available to small scale units, no effort has been put in by either of the two, on earlier occasions, and, in these proceedings, by the purported job-worker to establish that M/s Hem Agro Industries has a manufacturing facility where some production activity is undertaken on the tractor-trailors supplied by the appellant. In the absence of any evidence to the contrary and, considering the negligible scope for any further operation on branded tractor-trailors , it would appear that the second unit is merely a trading unit which disentitles them to eligibility for any exemption whatsoever. Use of brand name - Held that: - The claim of the appellant to ownership of the brand Ishan arising from the finding that clearances should be clubbed does not appear to rest on sound foundation. That clearances are to be clubbed is the finding consequent upon the lack of evidence that M/s Hem Agro Industries is devoid of wherewithal to manufacture; hence, the manufactured product of the appellant is entirely attributed to appellant for levy of duty. The ownership of the brand remains with M/s Hemraj Agro Industries irrespective of the finding that the entire manufacturer is effected by the appellant. Invoking of penalty under rule 173Q of Central Excise Rules, 1994 is not a flaw in the impugned order. Appeal rejected - decided against appellant.
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