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2018 (5) TMI 874 - AT - Central ExciseSSI Exemption - clubbing of value of clearances of four other manufacturing units - N/N. 8/2003-CE dated 01/03/2003 - Held that: - the facts of the case justifies the removal of the corporate veil in respect of all the units in this case. This reveals that all the units are having dejure separate existence but defacto existence of that of a single unit. SBTPL was the original unit started by Shri Mahendra Bohra and the same is to the defacto unit comprising all the units - the clearances of all the manufacturing units will need to be clubbed and the benefit of duty free clearance under N/N. 8/2003 is to be allowed to SBDTPL only - SSI benefit rightly denied. Valuation - adoption of selling price of the trading units as assessable value - It has been argued that the trading units are not “related” with any of the manufacturing units in terms of Section 4 (3) (b) of the Central Excise Act, 1944 - Held that: - all the manufacturing as well as trading units had only nominal existence but effectively were not independent but related. Since Shri Mahendra Bohra is the one person who has total financial as well as management control of all the units, the transaction values at which the goods are shown as sold from the manufacturing units to the trading units has no sanctity. It is not only that the manufacturing units and trading units are liable to be held as related persons as per Section 4 (3) (b) (iv), they are in effect one single large unit - the duty is required to be determined on the basis of the price on which the trading units have ultimately sold the goods to independent buyers. Similar issue decided in the case of COMMISSIONER OF C. EX., NEW DELHI Versus MODI ALKALIES & CHEMICALS LTD. [2004 (8) TMI 108 - SUPREME COURT OF INDIA]. Appeal dismissed - decided against appellant.
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