Job-work clearances and independent units: factual findings barred any substantial question of law, so duty and penalty could not stand.

The Tribunal treated the concerned units as separate independent entities on appreciation of evidence, rejected the allegation that they were dummy units, and applied the job-work notifications to hold that job-work clearances could not be clubbed with the principal unit for duty purposes. It further held that no duty liability survived and that penalty under Section 11AC could not be sustained. The High Court accepted that these conclusions were factual determinations based on the record, not questions of law, and therefore held that no substantial question of law arose for consideration; the appeal failed.

---

---

Issues: Whether the Tribunal's findings that the concerned units were separate independent entities, that the job-work notifications applied, and that no substantial question of law arose from the duty and penalty dispute were sustainable.

Analysis: The Tribunal's decision rested on appreciation of evidence showing independent existence of the units and rejecting the allegation that two concerns were dummy units. It also relied on the job-work notifications to hold that clearances processed on job work could not be clubbed with the principal unit for duty purposes. On that basis, the Tribunal held that no duty liability survived and, consequently, the penalty under Section 11AC could not be sustained. The High Court found these to be factual determinations based on the material on record and not questions of law.

Conclusion: No substantial question of law arose for consideration, and the appeal failed.

---