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2016 (11) TMI 1227 - AT - Central ExciseSSI exemption - dummy unit - clubbing of clearances - Held that: - The case establishes that M/s.KE was a bubble. That was used as a conduit of M/s.SI to divide clearances to claim SSI benefit by both falsely. M/s.KE was neither a distinct entity nor engaged in manufacturing activity nor also cleared any excisable goods. False records of M/s.KE were maintained in the premises of M/s.SI as is revealed from para-2 of the SCN. Only spurious transactions were recorded in the name of M/s.KE in its records. Such records were recovered from the premises of M/s.SI - we are shocked to notice that a concern not manufacturing goods i.e. M/s.KE was given undue advantage by the notice issuing authority granting SSI benefit in Annexure-II to SCN. That establishes that a dummy unit of M/s.SI got the SSI benefit which is not legally tenable to it. That aspect deserves enquiry by Chief Commissioner of Central Excise so that in future undue advantage of public grant is not given by officers. If the authority finds such grant has caused prejudice to Revenue, appropriate measure may be taken. The whole case of M/s.KE was based on the falsehood which was well known to the owners and Power of Attorney holder of both the units. Such act of sabotage to Revenue calls for dismissal of both the appeals - decided against assessee.
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