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2020 (2) TMI 136 - AT - Central ExciseSSI exemption - clubbing of clearances - dummy unit or not - mutual financial dependence over other unit or not - HELD THAT:- The Department has failed to discharge its burden for proving the financial dependence of M/s.Siddharth Plastoware upon the appellant. They have also failed to prove the final product of two of the units to be common. Thus, M/s.Siddharth Plastoware is wrongly confirmed to be the dummy of the appellant by the adjudicating authority below. Resultantly, the clubbing of clearances of two is not sustainable. There is no denial of the Department that individually their clearances are less than 1.5 Crores. Benefit of S.S.I. Exemption, therefore, cannot be denied to them - Otherwise also both the industries fall within the rural area, as is apparent from address that they lie in Khasra No.29 & 30. Penalty - HELD THAT:- Since demand in question is held unsustainable and that the confirmation thereof has been set aside, there can be no sustainability of the penalty upon Shri Harphool Singh Jhuria the appellant. The amount of ₹ 25 Lakhs as was debited from the appellant’s account due to en-cashing of one of the three cheques issued by the appellant has therefore, to be refunded back to the appellant. Appeal allowed - decided in favor of appellant.
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