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M/s. Garg Industries And Shri B.M. Garg, Proprietor Versus CCE, Noida

2015 (4) TMI 1023 - CESTAT NEW DELHI

Denial of SSI Exemption - Imposition of penalty - Clubbing of clearances - SCN was not issued to all the parties - Held that:- Units of M/s. Jai Hardware Pvt. Ltd., M/s.Door Devices Manufacturing Company, M/s. Deepak Hinges Pvt. Ltd., M/s.Monika Steels Pvt. Ltd. M/s.D.D. Hardware Pvt. Ltd. and M/s. D.P. Garg Exports Ltd. are the existing firms/companies having factories at different locations. Therefore, if the clearances of these units are sought to be clubbed with the clearances of the appella .....

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s absolutely necessary that if the clearances of a unit A are sought be clubbed with the clearances of the units, B, C and D and these units are owned by different persons, show cause notices must be issued to B, C and D, whose clearances are sought to be clubbed with the clearances of Unit A. We are supported in this view by the judgement of Calcutta High Court in the case of Diamond Scaffolding Company reported in [2011 (7) TMI 854 - CALCUTTA HIGH COURT] and the judgements of the Tribunal in t .....

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2015 - Dated:- 9-4-2015 - Mr. Rakesh Kumar, Member (Technical) And Mr. S.K. Mohanty, Member (Judicial) For the Petitioner : Shri Rupesh Kumar , Shri Parvesh Behuguna and Shri Hrishikesh, Advocates For the Respondent : Shri R.K. Grover, DR ORDER Per Rakesh Kumar: The appellant unit, a proprietorship concern of Shri B.M. Garg, is a small scale unit engaged in the manufacture of Hinges and Hardware articles. The period of dispute in this case is from Jan. 2008 to November, 2008. During this period, .....

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Monika Steels Pvt. Ltd. with Shri B.M. Garg and Shri Satish Mittal as Directors, M/s.D.D. Hardware Pvt. Ltd. with Shri B.M. Garg and Ms. Rama Garg as Directors and M/s. D.P. Garg Exports Ltd. with Shri B.M. Garg and Shri D.Das as Directors. The Department accordingly seeks to club the clearances of the appellant with the clearances of the above mentioned six manufacturing units for determining their eligibility for SSI exemption. It is on this basis that the Addl. Commissioner vide order-in-orig .....

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ardware Pvt. Ltd., M/s.Door Devices Manufacturing Co., M/s. Deepak Hinges Pvt. Ltd.,M/s. Monika Steels Ltd., M/s. D.D. Hardware Pvt.Ltd. and M/s.D.P. Garg Exports Ltd., no show cause notice had been issued to these units, whose clearances were sought to be clubbed with the clearances of the appellant unit. 2. On appeal being filed to the Commissioner (Appeals) against this order of the Addl. Commissioner, the same was dismissed vide order-in-appeal dated 30.09.2010. Against this order of the Com .....

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the impugned order has to be set aside, that in this regard, he relies upon the judgements of the Honble Calcutta High Court in the case of CCE Vs. Diamond Scaffolding Company reported in 2011 (274) ELT 10 , M/s. Copier Force India Ltd. Vs. CCE, Chennai reported in 2008 (231) ELT 224 , K.R. Balachandra Vs. CCE, Coimbatore reported in 2003 (151) ELT 68 and Poly Resins Vs. CCE, Chennai reported in 2003 (161) ELT 1136 and that in view of this, the impugned order is not sustainable. 5. Shri R.K. G .....

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i B.B. Garg, is manufacturers building hardware articles. There are six group units viz. M/s. Jai Hardware Pvt. Ltd., in which Shri B.M. Garg and Ms.Rama Garg as Directors, M/s.Door Devices Manufacturing Company, a partnership firm of Shri B.M. Garg and Shri V.P. Garg, M/s. Deepak Hinges Pvt. Ltd. with Shri B.M Garg and Shri V.P. Garg as Directors, M/s.Monika Steels Pvt. Ltd. with Shri B.M. Garg and Shri Satish Mittal as Directors, M/s.D.D. Hardware Pvt. Ltd. with Shri B.M. Garg and Ms. Rama Gar .....

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ispute that no show cause notices have been issued to M/s. Jai Hardware Pvt. Ltd., M/s.Door Devices Manufacturing Company, M/s. Deepak Hinges Pvt. Ltd., M/s.Monika Steels Pvt. Ltd. M/s.D.D. Hardware Pvt. Ltd. and M/s. D.P. Garg Exports Ltd. Shri R.K. Grover, ld. DR pleads that the issue of show cause notice to these six group units/firms was not fatal, as Shri B.M. Garg was holding the majority shares or was a partner in these private limited companies/firms and hence, non-issue of show cause no .....

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ions Pvt. Ltd. (supra) is not applicable to the facts of this case, as as discussed in para-4 of the judgement, in the case of Diwan Saheb Fashions Pvt. Ltd. (supra), the units whose clearances were sought to be clubbed were dummy units and did not have separate existence. In the present case, the units of M/s. Jai Hardware Pvt. Ltd., M/s.Door Devices Manufacturing Company, M/s. Deepak Hinges Pvt. Ltd., M/s.Monika Steels Pvt. Ltd. M/s.D.D. Hardware Pvt. Ltd. and M/s. D.P. Garg Exports Ltd. are t .....

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