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of <h1>Tribunal dismisses Revenue's appeal, upholds separate legal identities of companies in duty demand case.</h1> The Tribunal upheld the Commissioner's decision to set aside duty demand and penalties on M/s. Suzy Nova Dental Pvt. Limited and M/s. S. Nova Dental ... Clubbing of clearances - SSI exemption -Revenue entertained a view that two units are not independent units and as such, the clearance value of both the units is required to be clubbed for the purpose of small scale exemption benefits - One unit is a Private Limited whereas the other is a Partnership firm. Merely because the two units have proximity, common passage, common storage of raw materials or inter relationship of partners of the units, cannot be a sole ground for clubbing of clearances - Further observed that there is no evidence of any financial flow back of funds between the two units - Hence, decided in against of revenue. Bought out items - Assessable value - The assessee have imported spares and components of dental chair and the same were kept at their godown located elsewhere and were supplied directly from the godown to the buyers under the cover of commercial invoice. . The same were not brought to the factory premises and no work or process was done on the same. Held that: The Tribunal in the case of Suz-dent (India) Pvt. Limited v. CCE, Ahmedabad, has held that imported/bought out articles supplied with own manufactured dental chairs is not required to be included in the assessable value of the final product. Dentail chair - Assessable vaue -The Revenue has no case that these hand-pieces equipments have been assembled or fitted into dentist chair - The supply of hand-pieces is only a trading activity - No manufacturing activity is undertaken by the assessee in connection with these hand-pieces, its value cannot be added to the assessable value of the dental chairs - The learned Counsel for the appellant has correctly placed reliance on the ratio of the decision of this Tribunal in Tata Telecom Ltd. v. CCE. Cochin - Hence, set aside the order impugned and allow the appeal.” Demand and penalty - No infirmity in the view adopted by the Commissioner (Appeals) in setting aside the demand of duty and penalties imposed upon the respondents - Accordingly, appeals filed by the Revenue fail. Issues:Clubbing of clearances of two units for small scale exemption benefits.Inclusion of bought out items in the assessable value of dental chairs.Clubbing of Clearances:The case involved M/s. Suzy Nova Dental Pvt. Limited and M/s. S. Nova Dental Corporation engaged in manufacturing dental chairs. The Revenue contended that the clearances of both units should be clubbed for exemption benefits. However, the Commissioner (Appeals) disagreed, noting the units' separate legal identities, financial transactions, and orders secured individually. The Revenue failed to contest these findings adequately. The Tribunal emphasized the need for evidence in each case to justify clubbing clearances. Noting the lack of rebuttal by the Revenue, the Tribunal upheld the Commissioner's decision.Inclusion of Bought Out Items:Regarding the inclusion of bought out items in assessable value, the appellants imported spares and components, supplying them directly to buyers from a separate godown without processing at the factory. The Tribunal highlighted that optional items supplied separately need not be included in the assessable value, citing precedents. The Tribunal agreed that the goods supplied, like digital pulp testers and handpieces, were not integral to the dental chairs and were not processed with the chairs. Relying on relevant case law, the Tribunal upheld the decision to set aside the demand for duty and penalties. The appeals filed by the Revenue were dismissed.In conclusion, the Tribunal found no errors in the Commissioner's decision to set aside the duty demand and penalties on the respondents. The judgment highlighted the importance of separate legal entities and the lack of evidence supporting the Revenue's claims. The inclusion of bought out items in the assessable value was deemed unnecessary based on precedents and the nature of the supplied goods. The appeals by the Revenue were unsuccessful, and the initial decision was upheld.
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