Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2022 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (2) TMI 58 - AT - Central ExciseSSI Exemption - clubbing of clearances - existing manufacturer eligible for excise duty or not - clubbing of their clearances with M/s Pap-Flon Engineering Co.Pvt. Ltd - Show Cause Notice dated 18-10-2010 was issued within permitted time limitation for period from 1-4-2005 to 30-09-2010 or otherwise - whether M/s Pap-Flon Enterprise is existing manufacturer eligible for duty exemption benefits claimed under SSI Notification No. 8/2003-CE or not? - penalty u/r 27 of CER, 2002 - HELD THAT:- In the facts of this case, it is found that M/s Pap Flon Enterprise is an existing manufacturer eligible to avail SSI Exemption of Notification No. 8/2003-CE, having separate factory, machinery, PAN, Sales Tax, IEC, Professional Tax, ESIC Numbers, separate Electricity Meters and separate Bank Accounts - Tribunal’s decision in the case of M/S ALPHA CONVERTING MACHINES PVT. LTD., RAJAN M DAVID VERSUS C.C.E. – AHMEDABAD-I [2018 (9) TMI 271 - CESTAT AHMEDABAD] is on different facts of only dummy units and hence it is not applicable in the facts of this case. The ratio of decisions is that dummy units created to avail ineligible SSI benefits may not get ineligible benefits of SSI Notification, but benefits to existing units can not be denied the SSI Exemption, if available otherwise. Therefore, clubbing of clearances of M/s Pap Flon Enterprise, who is existing manufacturer and eligible for SSI Exemption, with clearances of M/s Pap Flon Engineering is not justified. Whether Show Cause Notice to M/s Pap-Flon Enterprise proposing for denial of SSI exemption claimed and proposing clubbing of their clearances with M/s Pap-Flon Engineering Co.Pvt. Ltd was required to be issued or otherwise? - HELD THAT:- M/s Pap-Flon Enterprise is an existing manufacturer who is eligible for duty exemption claimed under SSI Notification No. 8/2003-CE and considering the relied upon decisions, the submissions of Appellants is agreed upon, that Show Cause Notice should have been issued to M/s Pap Flon Enterprise proposing for denial of SSI exemption claimed and proposing for clubbing of their clearances, was required to be issued. Consequently, this question is answered in favour of the Appellants. Whether demands in Show Cause Notice dt. 18-10-2010 was issued within permitted time limitation for period from 1-4-2005 to 30-09-2010 or otherwise? - HELD THAT:- M/s Pap Flon Enterprise have not suppressed facts of continuing manufacturing activity of manufacture of goods availing SSI exemption since 1993-94. Relevant Copies of declarations filed by M/s Pap Flon Enterprise are on record in these Appeals and synopsis filed. In this context, it is found that the question of invoking extended period of time limitation is a mixed question of facts and the law. In the facts and circumstances of this case and law settled, invocation of extended period of time limitation in this case, is not justified and impugned Order-in-Original dated 13-05-2011 cannot be sustained on time limitation also. Penalty u/s 27 of CER, 2002 - HELD THAT:- The appellants have made certain procedural lapses in maintaining records for the movement of goods from M/s Pap-Flon Enterprise to M/s Pap-Flon Engineering Co Pvt Ltd and vice-versa, as required for which they are liable for penalty of ₹ 5000/- each under Rule 27 of Central Excise Rules, 2002 on M/s Pap-Flon Engineering Co Pvt Ltd and M/s Pap-Flon Enterprise. All such clearances in open market were with proper Invoices issued under the Central Excise Rules, 2002. However, it is found that since demand of duty with interest & equal penalty is set aside, separate penalty imposed under Rule 26 of Central Excise Rules, 2002 on Shri Mukesh Mistry and Manish Parmar, is not warranted. Appeal allowed.
|