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2009 (6) TMI 499 - AT - Central ExciseEvasion of duty- demand confirmed on the ground that units floated and controlled by two persons and materials and capital goods exchanged and cash seized. All six units were independent units having own manufacturing facility. Sale tax and CST and SSI registration available with units separately. Units considered dummy without considering case laws. Evidence not strong to conclude manufacture and clearance were on behalf of another person. Clearance of existing unit clubbed and duty confirmed on non existing unit. Law cannot prevent unit or group working for common benefit. Unit may be common in present case but evidence not produced to show “SP Group” as a legal entity. Mere controlling of operation of six units by few person not make group as a legal entity. Mere controlling of operations of six units by few persons not make group as “SP group” duty not demandable from such non-existent entity. Show cause notice served to all six units and duty not demanded from them independently. Demand on ‘SP Group’ jointly. Annexures showing year wise clearance by all independent units. Demand ought to have been confirmed against each independent unit based on figure in SCN. Held that- “SP Group” being non existent, demand confirmed on it not sustainable. Benefit of Notification No. 5/98-C.E. to be given to individual assessee and duty demand to be re determined. Matter remanded to adjudicating authority for confirmation of demand to be re-determined. Matter remanded to adjudicating authority for confirmation of demand against individual units. SSI exemption alleged as wrongly availed by fragmentation of units and goods clandestinely removed without payment of duty. Held that- as the Tribunal not able to give decision on clandestine removal as finding thereon absent in impugned order. Matter remanded to adjudicating authority to reconsider issue and pass fresh order.
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