Clubbing of clearances under SSI exemption fails where job-worker is not shown to be a dummy unit or under full control.

Clearances of a respondent-unit and its job-worker could not be clubbed for computing the exemption limit under Notification No. 175/86-CE because the department failed to prove that the job-worker was a dummy unit or under the respondent's full control. The Tribunal noted no material showing mutuality of interest, no financial flow back, and no evidence that the units were not dealing at arm's length. Treating the units as distinct entities, the Tribunal held that the exemption limit had to be examined separately, and clubbing was not justified.

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Issues: Whether the clearances of the respondent-unit and the job-worker could be clubbed for computing the exemption limit under Notification No. 175/86-CE on the basis that the job-worker was a dummy unit or otherwise under the respondent's control.

Analysis: The Tribunal found that the record contained no material to show that the respondent exercised full control over the job-worker so as to justify clubbing of clearances. There was no evidence of mutuality of interest, nor any financial flow back between the two units. The units were treated as distinct entities, and the department failed to establish that the transactions were not at arm's length.

Conclusion: The clearances could not be clubbed, and the Revenue's appeal failed.

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