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2018 (10) TMI 1532 - AT - Central ExciseSSI Exemption - dummy unit - Clubbing of clearances - Department made out a case that M/s. Ganesh Enterprises is owned by proprietor Shri Yogesh Chandradutt Dhariyal and therefore, M/s. Ganesh Enterprises is not entitled for SSI exemption - issue can be solved on the basis of classification of product itself. Held that:- Reliance placed in the coordinate bench of this Tribunal in the case of Dhariyal Chemicals [2014 (8) TMI 81 - CESTAT AHMEDABAD]. From the above decision, it is observed that the product of the appellant is identical to the product involved in above judgment of the Tribunal - As per the department itself, M/s. Ganesh Enterprises and M/s. Dhariyal Chemicals belong to one person i.e. Shri Yogesh Chandradutt Dhariyal. In the show cause notice also, it is admitted that the product of M/s. Dhariyal Chemicals and M/s. Ganesh Enterprises is identical. It is also observed that the ingredients used for manufacture of product by both the units are the same and resultant product is also the same. Therefore, in view of the judgment of this Tribunal in the case of Dhariyal Chemicals the product in the appellant’s case is also clearly classifiable under Chapter heading 47 which attracts nil rate of duty. Therefore, there is no need to go to the question of limit of SSI exemption. Since, the department’s proposal is to club the clearances of M/s. Dhariyal Chemicals and M/s. Ganesh Enterprises, but the clearances of M/s. Dhariyal Chemicals has been held as nil rated under Chapter heading 47, therefore, the same needs to be deducted from the aggregate value of M/s. Dhariyal Chemicals and M/s. Ganesh Enterprises. The yearly turn-over of M/s. Ganesh Enterprise is well within the limit of ₹ 1.5 Crores, therefore, even if it is assumed that the product of M/s. Ganesh Enterprises is dutiable, but when the products of M/s. Dhariyal Chemicals is not dutiable, the clearances of M/s. Ganesh Enterprise is eligible for SSI Exemption Notification No. 8/2003-Central Excise. Appeal allowed - decided in favor of appellant.
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