TMI Blog2019 (8) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... IEC and RSF are proprietorship concerns, belonging to Shri Sandeep Ghosh and Shri Sudeep Ghosh respectively - Since, the appellant is a private limited company; its clearances cannot be clubbed with the clearances of the proprietorship concerns, as per the above principles laid down by the CBEC in terms of Section 37B of the Act ibid. Benefit of N/N. 214/86-C.E. dated 03.04.1986 read with circular dated 04.09.1986 issued by CBEC - HELD THAT:- While computing the proposed demand for the earlier show cause notice dated 16.12.1993, the value of chassis was excluded by the department, which is evident from the annexure to such show cause notice. Thus, in this case since, there is no change in the method of valuation adopted by the appellant and without proper substantiation of the allegation, it cannot be asserted that the appellant should not be entitled for the benefit provided under the said notification - Hence, there is no merit in the impugned order, so far as it relates to denial of the benefit of such notification to the appellant. Invocation of provisions of erstwhile Rule 173Q ibid read with Section 11AC ibid for imposition of penalty - HELD THAT:- Section 11AC ibid wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same company were not independent entities separately, but were manufacturing the goods only for the appellant's company. The order dated 15.06.1998 was appealed against before the Tribunal, which was disposed of vide order dated 12.05.2005 by way of remand to the original authority for a fresh fact finding on the issue of clubbing of clearances in light with the judgment of Hon'ble Supreme Court in the case of Supreme Washers (P) Ltd. - 2003 (151) ELT 14 (S.C.), Area Controls Pvt. Ltd. - 2003 (158) ELT 212 (S.C.) and Modi Alkalies Chemicals - 2004 (171) ELT 155 (S.C.). On de novo adjudication, the learned Commissioner of Central Excise, Thane-I, Mumbai vide the impugned order dated 11.07.2008 has clubbed the clearance value of excisable goods of the proprietorship firms with the clearance value of the appellant's unit and confirmed central excise duty demand of ₹ 33,24,892/- along with interest and also imposed equal amount of penalty on the appellant company. Besides, the impugned order also imposed penalties of ₹ 10,00,000/- and ₹ 5,00,000/- respectively on Shri Ganesh C. Ghosh and Shri Gautam Ghosh. 1.4 Feeling aggrieved with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vs. Limca Flavours Fragrances Ltd.-2006 (198) ELT 106 (Tri.-Mumbai) (iii) L.D. Industries Vs. CCE-2003 (157) ELT 459 (Tri.-Del.) (iv) Supreme Washers (P) Ltd. Vs. CCE-2003 (161) ELT 14 (S.C.) (v) CCE Vs. Modi Alkalies Chemicals Ltd.-2004 (171) ELT 155 (S.C.) 3.2 The learned Advocate further submitted that the SSI limits for the relevant period have been wrongly arrived at by including the value of the chassis in respect of LPG tanks manufactured by the appellant inasmuch as value of chassis is to be excluded in terms of Notification No. 241/86-C.E. dated 03.04.1986 and the circular dated 04.09.1986 issued by CBEC. 3.3 Learned Advocate also contended that the interest liability cannot be fastened on the appellant inasmuch as Section 11 AB of the Central Excise Act, 1944 was inserted in the statute book w.e.f. 28.09.1996, which is much after the period of dispute involved in the present case. He has relied upon the judgment of Hon'ble Bombay High Court in the case of CCE, Mimbai-I vs. Dev Ashish - 2015 (317) ELT 405 (Bom.) to strengthen such stand. 3.4 The learned Advocate also sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ries should of course be combined. Limited companies whether public or private are separate entities distinct from the shareholders composing it. Hence each limited company is a manufacturer by itself and will be entitled to a separate exemption limit. 6.1 In the case in hand, it is an admitted fact on record that the appellant is a private limited company, incorporated under the Companies Act, 1956 and the other two firms namely, M/s IEC and RSF are proprietorship concerns, belonging to Shri Sandeep Ghosh and Shri Sudeep Ghosh respectively. Since, the appellant is a private limited company; its clearances cannot be clubbed with the clearances of the proprietorship concerns, as per the above principles laid down by the CBEC in terms of Section 37B of the Act ibid. 6.2 In the case of Supreme Washers (P) Ltd. (supra), the Hon ble Apex Court have noted and also appreciated with the contents of the Circular dated 29.05.1992 and since, the appellant therein had not pleaded for the benefit of the notification dated 01.03.1986 (supra) read with the clarification furnished in the said circular, were pleased to remand the matter to the Tribunal for the limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of clearances for the purpose of availing SSI benefit, for the relevant period, has been wrongly arrived at by the department in including the value of the chassis for the LPG tanks manufactured by the appellant. As per Notification No. 241/86-C.E. dated 03.04.1986 read with circular dated 04.09.1986 issued by CBEC, the value of chassis is required to be excluded for the value of the final product. We find that while computing the proposed demand for the earlier show cause notice dated 16.12.1993, the value of chassis was excluded by the department, which is evident from the annexure to such show cause notice. Thus, in this case since, there is no change in the method of valuation adopted by the appellant and without proper substantiation of the allegation, it cannot be asserted that the appellant should not be entitled for the benefit provided under the said notification. Hence, we do not find any merit in the impugned order, so far as it relates to denial of the benefit of such notification to the appellant. 6.5 The impugned order in this case, has invoked the provisions of erstwhile Rule 173Q ibid read with Section 11AC ibid for imposition of penalty equal to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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