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2020 (7) TMI 291 - AT - Central ExciseSSI Exemption - clubbing of clearances - Two independent companies within same complex (factory premises) and common shareholders / directors / management - benefit of N/N. 8/03-CE dated 1.3.2003 as amended from time to time - HELD THAT:- It is a fact on record that M/s. NCPL was established in the year 1993 as private limited company and M/s. NAPL as a private limited company. As per the CBEC Circular No.6/92 dated 29.5.1992, the Board has clarified that private limited companies are treated as separate, therefore, we have no hesitation to hold that both the units are separate units. As (i) both are private limited companies, (ii) both are manufacturing different products, (iii) both are having separate electricity connection, (iv) both are having different raw material which is separately stored, (v) both are having separate work force, (vi) both are having separate bank account and accountant to maintain record, (vii) both are having independent buyers and consideration have never flown from one company to another, (viii) money lended by one company has been returned, there is no diversion of funds and flow of funds from one unit to another unit, (ix) creation of the units were within knowledge of department since long back, (x) the appellant is availing benefit of SSI since its incorporation, (xi) shares holders of both the companies are same and common but not all (xii) directors of the are common but not all (xiii) the appellant is working in a separately demarcated portion. Moreover, necessary statutory declarations were filed by the appellant from time to time. Reliance can be placed in the case of CCE, JALANDHAR VERSUS M/S. S.K. SACKS PVT. LTD., SHRI ARVINDER PAL SINGH, DIRECTOR [2017 (3) TMI 413 - CESTAT CHANDIGARH] where it was held that when the units have separate registration with the Central Excise Department/Income-Tax Authorites, permission to do job work on behalf of other undertaking, factors like one supervisor working for both the units and one unit have certain financial dealings for the other unit cannot be a basis for clubbing of clearances of two units. The clearance of the appellant unit and M/s. NAPL cannot be clubbed. If the clearances of the appellant are to be clubbed with M/s.NAPL then the duty is required to be demanded from M/s.NAPL, which is not the case here - the appellant is entitled to avail the benefit of exemption Notification No.8/03-CE dated 1.3.2003 - appeal allowed - decided in favor of appellant.
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