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2009 (5) TMI 243 - AT - Central ExciseClubbing of clearances on the ground that it had exceeded the ceiling limit of clearance value and hence not eligible to the benefit of SSI exemption under Notification No. 1/93-CE dated 28-2-1993 - We find that there was no clear-cut demarcation between the factory of MEPP and that of EPI whose proprietor was the wife of the Managing Director of MEPP. Further, raw materials for the manufacture of finished products had been stored in a single room without any identification as to which one belongs to MEPP or EPI. There was only one electricity connection for both the units. - The non-availability of the minimum machinery required for the manufacture of final products drives the lost nail in the coffin of EPI’s claim that they were an independent unit. We therefore, agree with the lower authorities that EPI is only a shadow concern of MEPP which was floated to avail improper SSI exemption. – Clubbing of clearances is upheld - In respect to unit in which son being proprietor owner of one firm, and in another firm, partner with his mother – Mutuality of interest and financial flow back between the units - The evidence on record also establishes that bills for purchase of materials by one unit have been settled by another unit. All these points leads to the inescapable conclusion that MFE and EPI were only facades companies floated by MEPP, to gain undue benefit under the SSI exemption notification. – clubbing of clearances is upheld – Plea that they were under the bona fide belief that the other two units were independent units, is not acceptable – intention to evade duty is clearly evident, so extended period is invocable
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