TMI Blog2004 (11) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Excise Rules, 1944 for conversion of raw materials into Ciprofloxicin in base and pure form and Ibuprofen. The Central Excise Officers of Hyderabad Collectorate conducted certain investigations and recovered incriminating documents from the appellants. The appellants were enjoying the benefit of exemption notification 1/93, dated 28-2-1993 as amended. The main allegation of the revenue is that that the appellant is just a dummy of the M/s. Herren. Further it was alleged that the appellants received raw materials from M/s. Herren who did not follow any procedure, converted them into finished products and cleared them. A duty escapement of Rs. 34,85,396/- was alleged. The department initiated proceedings against the appellant. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rasimha Murhty, SDR appeared for revenue. 3. The learned Advocate urged that the related person concept in terms of Section 4 is not to be imported for the purpose of clubbing the clearances for SSI exemption: M/s. Kiran and M/s. Herren are Limited Companies and therefore they are separate legal entities. The clubbing can be done only if it is held that what is manufactured by the appellant is to be held as not manufactured by the appellant but of M/s. Herren. Even in that case, the show cause notice should have been issued to M/s. Heren and duty demanded from M/s. Herren. However, in this case, while holding that M/s. Kiran is a dummy unit, the adjudicating authority has demanded duty from the appellants, a dummy as per the findings of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. We find that the show cause notice has not at all been issued to Herren who according to the Adjudicating Authority own the Appellant unit also. We also want to make it clear that the fact that two units are related as per Central Excise Act, ipso facto does not lead to the conclusion that their clearances should be clubbed for SSI exemption. The concept of Related Person is only for Valuation and not for clubbing the clearances. Two units may be related and yet each can enjoy SSI exemption and the fact of being related is not a bar to availing of SSI exemption provided all conditions of the relevant notifications are satisfied. In the light of the Supreme Court ruling, and our findings, the OIO cannot be sustained. In the circumstanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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