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2017 (3) TMI 413 - AT - Central ExciseSSI Exemption - clubbing of clearances of related persons - extended period of limitation - Whether the clearances made by the respondents M/s.S.k.Sacks Pvt.Ltd. and M/s.A.S.Processors can be clubbed together and the benefit of SSI exemption be denied to them not in the facts and circumstances of the case? - Held that: - As both the units are private limited company and registration with the Central Excise and under the Companies Act, therefore, relying on the CBEC circular No.6/92 dated 29.5.1992, we hold that both companies are separate units and clearances of both the units cannot be clubbed together - when the units have separate registration with the Central Excise Department/Income-Tax Authorites, permission to do job work on behalf of other undertaking, factors like one supervisor working for both the units and one unit have certain financial dealings for the other unit cannot be a basis for clubbing of clearances of two units. M/s. S.K. Sacks Pvt. Ltd. and M/s A.S. Processors are two Private Limited companies separately registered with Excise Authorities, Income Tax, State Sales Tax Department and even under Factories Act. Further it is not a case where the allegation of the revenue was that M/s. A.s. Processors is a dummy unit - it emerges that the department has not brought on record sufficient evidence to sustain the charge of financial flow back from one unit to other and whatever the facts the department has brought on record are normal commercial transactions and cannot be termed as a case of financial flow back in any case - clubbing of clearances of two private limited companies i.e. M/s S.K. Sacks Pvt. Ltd., and M/s. A.S. Processors (P) Ltd., Amritsar is not sustainable. Whether the extended period of limitation is invokable or not? - Held that: - it is clear that the said is private limited company does not own any other factory in their own name, therefore, there is nothing wrong in the said declaration and the said declaration cannot be the basis for invoking the extended period of limitation. As all the facts were in the knowledge of the department, therefore, the show cause notice cannot be issued by invoking the extended period of limitation - the extended period of limitation is not invokable. Appeal dismissed - decided against Revenue.
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