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Two Independent Units in the same premises whether clubbing provisions will apply or not

Central Excise - Started By: - Prem Bajaj - Dated:- 31-1-2016 Last Replied Date:- 4-2-2016 - Dear Experts, Two Independent Partnership firm are located in the one premises only separate records are maintained Generally Clubbing should be applied for the purpose of calculating the turnover(SSI units) But i read the judgement of CCE v. Standard Watch Co. P ltd. - 2000(119) ELT 703(Cestat) = 2000 (1) TMI 277 - CEGAT, NEW DELHI In this case it is clearly stated that Clubbing will not apply. I am con .....

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ment The Madhya Pradesh High Court Bench at Indore comprising Hon ble Mr. Justice P.K. Jaiswal and Hon ble Mr. Justice D.K. Paliwal on 27-10-2014 dismissed the Central Excise Appeal No. 8 of 2014 filed by Parag Fans and Cooling Systems Ltd. against the CESTAT Final Order No. 57136/2013(PB), dated 18-7-2013 as reported in 2013 (297) E.L.T. 235 (Tri. - Del.) = 2013 (11) TMI 689 - CESTAT NEW DELHI (Commissioner v. Parag Fans and Cooling Systems Ltd.). While dismissing the appeal, the High Court pas .....

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f both the factories. [Parag Fans and Cooling Systems Ltd. v. Commissioner - 2015 (321) E.L.T. A154 (M.P.) = 2014 (10) TMI 875 - MADHYA PRADESH HIGH COURT] - Reply By CS SANJAY MALHOTRA - The Reply = Dear Mr. Bajaj,Nicely presented and elaborated by Sh. Kasturi ji. No need to ad further. - Reply By Prem Bajaj - The Reply = Dear Sir, I could not relate this with my query, kindy elaborate if you can. My query is If two units is in the same premises i.e. independent units means first unit is on fir .....

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= Dear Mr. Bajaj,Important is the constitution of the business. If Proprietor opens up different units, the clearances will be clubbed as the Registration will be first of all PAN Based. In your case, please review Partnership constitution. If one Balance Sheet is prepared, partners being the common in both the units, clearance will be clubbed. - Reply By Prem Bajaj - The Reply = Dear Sir,Units are totally independent neither partners are common the firm two different person is there balance sh .....

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tion. It is not a cake walk for the department to club the value of clearances of two SSI units who are separately registered with Central Excise, Income Tax, VAT, Import-Export, Banks, Industries department etc.It is an uphill task for the department.However, other points to be noted are:- 1. There must not be common funding and financial flow-back between the two SSI units. 2.. There must not be common financial as well as management control between the two SSI units.In other words no financia .....

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individual clearances well within threshold limit - Notification No. 175/86-C.E. (3) SSI Exemption - Clubbing of value of clearances - Units/companies of same assessee liable to pay duty separately on crossing specified limit of aggregate value of their clearances and questions of identification of main and dummy unit does not arise (4) SSI Exemption - Clubbing of value of clearances - Value of clearances of units owned by different companies and firms to be clubbed if same are financially contr .....

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013-EX-(DB), dated 1-10-2013 as reported in 2014 (313) E.L.T. 87 (Tri.-Del.)= 2013 (11) TMI 1019 - CESTAT NEW DELHI (British Scaffolding India Pvt. Ltd. v. Commissioner). While dismissing the appeals, the Supreme Court passed the following order : 1. Delay condoned. 2. We have heard Shri S.K. Bagaria, learned senior advocate appearing for the appellant(s) and carefully perused the material available on record. In our considered opinion, we do not see any good ground to interfere with t .....

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ad not considered the principle of lifting of corporate veil in cases where different corporate entities appear to be just colourable devices for tax evasion. It was also held that the aggregate value of clearances of all the excisable goods for home consumption by the manufacturer from one or more factories during preceding financial year should not exceed specified threshold limit and if it does, none of the limits would be eligible for SSI Exemption even if value of clearances for home consum .....

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