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2020 (3) TMI 829 - AT - Central ExciseSSI Exemption - clubbing of clearances - the allegation in the case is that unit Nos. II and III were not having manufacturing facility to manufacture the goods in question and the same have been manufactured by unit No. I which has been cleared on the invoices issued by units Nos. II and III, therefore the duty is required to be paid by the unit No. I for clearance of the said machines. HELD THAT:- The reports relied upon by the Revenue is without visiting and examining the machinery installed at unit No. II and unit No. III whereas the report produced by the appellants is based on physical verification of the machinery installed by the Chartered Engineer at unit No. II and unit No. III. As Shri N.K. Arora has given report after visiting the unit and have stated that Unit No. II and III are having manufacturing facility to manufacture the goods in question, therefore, the allegation made by the Revenue that unit Nos. II and III are not having manufacturing facility is not sustainable. Therefore, it is held that the unit Nos. II and III are having the facility to manufacture the goods in question, therefore, the allegation against unit No. I is not sustainable. The allegation is that all the units are family concern, therefore, the clearance of made by all the units are to be clubbed with the clearances of unit No. I - unit No. I is private limited company and unit No. II and III are partnership concern, therefore, it cannot be said that all the units are family concerns as the director and the company are two separate entities. The allegation of the Revenue that unit Nos. II and III are not having manufacturing facility and the same cleared clandestinely by unit No. I are based on assumptions and presumptions. Therefore, the demands against the appellant are set aside and no penalty is imposable on all the appellants. Appeal allowed - decided in favor of appellant.
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