1997 (5) TMI 50 - SC - Central Excise

Appeals upheld: only genuine manufacturing unit liable for excise demand; six corporate façade units denied SSI exemption

SC allowed the appeals and set aside the Tribunal's order. The Court accepted the Collector's finding that seven registered units were a corporate façade ... Demand for excise duty - Manufacturer - Dummy - SSI exemption - Clubbing - Held that: - The principal factor that leads us to this conclusion is the finding of the Collector, upheld by the Tribunal, that the seven units which are the appellants before us 'are only a corporate facade although registered with the various authorities with a view to camouflage their actual identity and thereby avail of the exemption which, otherwise, would be inadmissible to them'. The Tribunal failed to give due attention to the fact that the Collector had confirmed, in the sum, the demand made in the show cause notices upon all seven units and their partners or Directors. Having regard to his conclusion that all units other than Gajanan Weaving Mills were fictitious units, the sequitur, one would have assumed could only be that it was Gajanan Weaving Mills which was the assessee and liable to satisfy the demand. By confirming the demand upon all the seven units the Collector appears, however, to have treated them all as assessees and, implicitly recognised their independent existence. Appeals are, therefore, allowed and the order of the Tribunal under appeal is set aside. The Supreme Court set aside the Tribunal's order in a case involving excise duty demands due to lack of clear calculations. The case is remanded to the Commissioner for fresh adjudication considering the corporate facade of the units involved. The parties can submit additional documents, and the decision should not refer to previous orders. No costs are awarded.