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2019 (8) TMI 147 - AT - Central ExciseSSI exemption - Clubbing of clearances - dummy units - Department contended that both IEC and RSF belonged to the appellant M/s SESPL - Clubbing of clearances of private limited company with the clearances of proprietorship concerns. HELD THAT:- In the present case, the adjudged demands confirmed against the appellants pertain to the period from 1989-90 to 1992-93 and thus, the relevant statutory provision for consideration of the issue is Notification No. 175/86 dated 01.03.1986. The said notification grants exemption from payment of Central Excise duty on the excisable goods cleared from the factory of the manufacturer up to certain aggregate value prescribed therein. The issue of clubbing of clearances of various firms for the purpose of determination of the aggregate value has also been discussed in the said notification. In the case in hand, it is an admitted fact on record that the appellant is a private limited company, incorporated under the Companies Act, 1956 and the other two firms namely, M/s IEC and RSF are proprietorship concerns, belonging to Shri Sandeep Ghosh and Shri Sudeep Ghosh respectively - Since, the appellant is a private limited company; its clearances cannot be clubbed with the clearances of the proprietorship concerns, as per the above principles laid down by the CBEC in terms of Section 37B of the Act ibid. Benefit of N/N. 214/86-C.E. dated 03.04.1986 read with circular dated 04.09.1986 issued by CBEC - HELD THAT:- While computing the proposed demand for the earlier show cause notice dated 16.12.1993, the value of chassis was excluded by the department, which is evident from the annexure to such show cause notice. Thus, in this case since, there is no change in the method of valuation adopted by the appellant and without proper substantiation of the allegation, it cannot be asserted that the appellant should not be entitled for the benefit provided under the said notification - Hence, there is no merit in the impugned order, so far as it relates to denial of the benefit of such notification to the appellant. Invocation of provisions of erstwhile Rule 173Q ibid read with Section 11AC ibid for imposition of penalty - HELD THAT:- Section 11AC ibid was inserted in the statute book w.e.f. 28.09.1996 by Section 76 of the Finance (No.2) Act, 1996 (33 of 1996) - The period in dispute involved in the present case is prior to the date of such statutory enactment and thus, the provisions of Section 11AC ibid are inapplicable to the facts and circumstances of the case inasmuch as such enactment will have prospective effect and cannot be applied retrospectively. Appeal allowed - decided in favor of appellant.
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