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2017 (11) TMI 1176 - CESTAT NEW DELHISSI Exemption - dummy unit - mutuality of interest - Revenue’s case is that two units BM and KA are in effect, one unit only and the second unit KA has been opened only for the purpose of wrongly availing SSI exemption separately for both units - clandestine removal - Held that: - KA with its own manufacturing facility cannot be held as a dummy of BM especially in view of separate sales tax assessments in the name of BM as well as KA. Both the units also had separate Income Tax, Sales Tax and Central Excise registrations and were also fling returns separately - there is no valid ground for clubbing the turnover of both the units. Clandestine removal - Revenue’s case is that BM as Involved in clandestine clearance of goods as evidenced by certain kaccha parchies recovered from the residence of Sh SB Goyal - Held that: - Clandestine clearance is a very serious charge and is required to be established by Revenue on the basis of tangible evidence - In the present case, absolutely no investigation has been carried out either at the end of the buyers who have allegedly purchased the finished goods or at the end of the suppliers who might have supplied the additional quantity of raw materials which would have been necessary to produce the goods allegedly clandestinely. The kaccha parchies have been linked to the manufacturer only through the statement of Sh SB Goyal which stands retracted. In the absence of any other corroboration evidence, this piece of evidence cannot be used to demand duty against the appellant - demand set aside. Appeal allowed - decided in favor of appellant.
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