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2018 (6) TMI 314 - AT - Central ExciseValuation - Job-work - clubbing of clearances - N/N. 214/86–CE dated 25/03/1986 - It appeared to Revenue that the appellant M/s Universal Engineers & Traders is liable to pay Central Excise duty on the turnover and/or clearances of M/s Kailash Industries and further in absence of declaration as required under Notification No. 214/86–CE dated 25/03/1986, the appellant is not entitled to benefit of goods removed under job work without payment of duty and further there is no undertaking given by M/s Kailash Industries to the Jurisdictional Central Excise Officer of M/s Universal Engineers & Traders - denial also on the ground that M/s Universal Engineers & Traders have not declared any receipt of job charges in their books of accounts - benefit of N/N. 83/94–CE. Held that:- The appellant and M/s Kailash Industries had led sufficient evidence to the effect that the clubbing provisions are not applicable, as M/s Kailash Industries have got their own independent existence and have been engaged in manufacturing and clearing of goods even prior to establishment of M/s Universal Engineers & Traders - It is evident from the facts that M/s Kailash Industries was set up in 1993–94 whereas the appellant M/s Universal Engineers & Traders had been set up during the period 2001–04, when they started manufacturing and were registered with the Central Excise Department. Further, I find that the clubbing of turnover of M/s Kailash Industries was also bad as M/s Kailash Industries was not to put to notice as to why their turnover should not be added to the turnover of the appellant – M/s Universal Engineers & Traders. Benefit under N/N. 83/94–CE - denial on the ground that the declaration was not filed - Held that:- The appellant unit is also entitled to the benefit of exemption Notification No. 83/94–CE, as amended as they have fabricated the panel boxes on job work basis for M/s Kailash Industries and the said items is specified for SSI industry. Only for reason they have not filed declaration by Kailash Industries, their exemption cannot be denied. Penalty under Rule 26 on M/s Kailash Industries - Held that:- The order of penalty is ab-initio void, as Shri K. C. Gupta-Proprietor had died before passing of the Adjudication Order. Appeal allowed - decided in favor of appellant.
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