2024 (5) TMI 990 - AT - Central Excise

Tribunal Rules in Favor of Appellant, Confirms Distinct Entity Status and Grants SSI Exemption Benefits with Relief.

M/s Noble Chlorochem Private Limited, Sh. Kailash Chand Gupta – Director of Noble Alchem Pvt Ltd, M/s Noble Alchem Pvt Ltd, Suresh Chand Gupta - Director of Noble Chlorochem Pvt Ltd Versus C.C.E. & S.T., Rohtak

M/s Noble Chlorochem Private Limited, Sh. Kailash Chand Gupta – Director of Noble Alchem Pvt Ltd, M/s Noble Alchem Pvt Ltd, Suresh Chand Gupta - Director ... Issues involved: The issue involves the appellant challenging the order passed by the Commissioner of Central Excise (Appeals-I), New Delhi, regarding the clubbing of clearances of the appellant and M/s Noble Alchem Private Limited to wrongly avail the benefit of SSI exemption during a specific period.Summary:1. Background and Facts: The appellant, M/s Noble Chlorochem Private Limited, established their unit for manufacturing Potassium Silicate in 1987 and later started producing Aluminium Chloride in 1993. Following a dispute with the State Pollution Control Board, the appellant switched to producing Potassium Titanate in 2001. The appellant availed SSI exemption upon crossing the exemption limit and was registered in 2011. The Department alleged that the appellant and M/s Noble Alchem Private Limited were one entity to wrongly claim SSI exemption from 2006 to 2012.2. Previous Tribunal Decision: The appellant's counsel argued that a previous Tribunal decision had already established that the appellant and M/s Noble Alchem Private Limited were separate entities, despite common directors and financial dealings. The Tribunal had ruled in favor of the appellant in a similar case for the period 2006 to 2012.3. Contentions: The appellant's counsel reiterated the previous Tribunal decision, while the Revenue's Authorized Representative supported the findings of the impugned order.4. Tribunal's Decision: After hearing both sides and examining the case records, the Tribunal noted the previous decision in favor of the appellant. The Tribunal emphasized various factors such as separate operations, accounts, workforce, and statutory declarations to conclude that the clearances of the appellant and M/s Noble Alchem Private Limited cannot be clubbed. Consequently, the impugned order was deemed unsustainable, and the appeals were allowed with consequential relief as per law.Therefore, the Tribunal set aside the impugned order, ruling in favor of the appellant based on the established separation between the appellant and M/s Noble Alchem Private Limited.