2017 (12) TMI 229 - AT - Central Excise

Tribunal orders fresh examination in SSI exemption denial case, citing procedural lapses

The Tribunal remanded the case concerning denial of SSI exemption and seizure of cash allegedly from clandestine goods. The decision highlighted ... SSI exemption - clubbing of clearances - three units were run by the assessee-Appellants and the fourth unit, M/s Krishna Udyog (India), working in the adjacent premises, also belongs to their family members but no duty demand has been made from them - Held that: - The Sales Tax Department’s certificate pertaining to the working of the two units from Bawana Industrial Area was not considered by the lower authorities which was rejected by merely mentioning as afterthought. But the fact remains that this certificate was issued by the Sales Tax Department of the Delhi Government - also, no cross-examination was provided pertaining to Shri Rajesh Tiwari, Supervisor. The matter needs fresh examination - appeal allowed by way of remand. Issues:1. Denial of SSI exemption to the assessee-Appellants' company.2. Seizure of cash considered as sale consideration of clandestinely manufactured goods.3. Clubbing of units for SSI exemption purposes.4. Lack of cross-examination opportunity for the assessee-Appellants.5. Allegations of statement taken under duress without corroborative evidence.Analysis:1. The appeals were filed against the Order-in-Original denying SSI exemption to the assessee-Appellants' company. The case involved the manufacturing of enamelled copper wire at rented premises shared with other units owned by family members. The Department denied the exemption based on findings during a visit and seizure of cash. The assessee argued that the units had shifted to independent premises, and the seized cash belonged to a registered trust. The Tribunal noted discrepancies and remanded the matter for fresh examination.2. The Department seized cash, alleging it as proceeds from clandestine goods. The assessee contended the cash belonged to a trust. The Tribunal observed the lack of cross-examination opportunity for the assessee regarding statements made by individuals. The Tribunal found discrepancies in the evidence and remanded the case for a fresh decision by the original authority, emphasizing the need for a fair opportunity for the assessee to present their case.3. The issue of clubbing units for SSI exemption arose due to the shared premises and familial ownership of multiple manufacturing units. The Tribunal considered the separate registrations, turnover limits, and independent operations of the units. The Tribunal emphasized the need for a detailed examination and directed the original authority to reevaluate the matter, allowing the assessee to submit additional evidence.4. The lack of cross-examination opportunity for the assessee regarding statements made by individuals was noted by the Tribunal. The absence of corroborative evidence for statements made under alleged duress raised concerns. The Tribunal highlighted procedural lapses and ordered a fresh examination with a fair chance for the assessee to present their case effectively.5. Allegations of statements taken under duress without corroborative evidence were raised by the assessee. The Tribunal acknowledged the concerns and emphasized the importance of providing a reasonable opportunity for the assessee to address the issues effectively. The Tribunal's decision to remand the case aimed to ensure a fair and thorough examination of the matter with proper procedural adherence.