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2009 (5) TMI 277 - AT - Central ExciseSSI exemption – Sham units - exemption under Notification No. 231/85 – Allegation that three units not having sufficient manufacturing facility to independently manufacture and that goods manufactured only under brand name of respondent no. 1 - Surprisingly, no statement of any of the person who has authored the documents has been relied upon. Infact, there is indication that no statement has been taken from any of the persons concerned. The show cause notices were based on mere inference of various documents adopted by the department. None of these documents have been shown to the witnesses and their version obtained. We are surprised that such a massive demand has been proposed based on “incriminating documents” resumed from the possession/control of the respondents and without deciding the veracity of the same in the investigation. – Units running as 3 separate units as also held by Commissioner – It is not proper to treat units as sham or dummy units in absence of reliable evidence - The fact that registration of these units as small scale units was rejected by the State Government is not relevant as the benefit of concessional rate of duty under Notification No. 231/85 is not dependent on registration as small scale units by the State Government. – Commissioner (A) order setting aside demand, upheld
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