TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal rules separate units owned by HUF and individual not eligible for SSI benefits</h1> <h3>JINDAL ELECTRICALS Versus COMMISSIONER OF C. EX., CHANDIGARH</h3> The Tribunal set aside the Commissioner's order regarding the clubbing of clearances of two units for Small Scale Industries (SSI) exemption eligibility. ... - Issues:1. Clubbing of clearances of two units for SSI exemption eligibility.Analysis:The judgment pertains to an appeal challenging an order by the Commissioner regarding the clubbing of clearances of two units, M/s. Jindal Electricals and M/s. Jindal Electric & Machinery Corporation, for the purpose of eligibility for the benefit of Small Scale Industries (SSI) exemption. The Commissioner had proposed to club the clearances of both units, denying the SSI exemption and imposing a penalty of Rs. 90 lakhs. The issue revolved around whether the clearances of both units should be aggregated for the purpose of the SSI exemption.The appellant contended that the view taken by the Commissioner was untenable, arguing that the individual and the Hindu Undivided Family (HUF) should be considered as distinct legal entities. The appellant relied on decisions under the Income Tax Act to support this contention. However, the Departmental Representative argued that decisions under the Income Tax Act may not be directly applicable to Central Excise Law, emphasizing that the key consideration should be whether the individual is the manufacturer of both factories.The Tribunal referred to the definition of 'manufacturer' under the Central Excise Act, which includes a person engaging in production or manufacture on their own account. The Tribunal cited a previous case where separate legal entities could not have their clearances clubbed for SSI benefit. Applying this reasoning, the Tribunal concluded that the clearances from the unit owned by the HUF, where the individual was only the Manager, could not be clubbed with the clearances from the unit owned by the individual in his personal capacity.In the final decision, the Tribunal set aside the Commissioner's order, allowing the appeals and granting the appellants consequential relief, including a refund of the pre-deposit made before the Tribunal.
TaxTMI 
TaxTMI 
