Two Independent Units in the same premises whether clubbing provisions will apply or not

[Asked by Guest]

Dear Experts,

Two Independent Partnership firm are located in the one premises only separate records are maintained

Generally Clubbing should be applied for the purpose of calculating the turnover(SSI units) But i read the judgement of CCE v. Standard Watch Co. P ltd. - 2000(119) ELT 703(Cestat) = 2000 (1) TMI 277 - CEGAT, NEW DELHI In this case it is clearly stated that Clubbing will not apply.

I am confused, Please advice

Thank you in advance.

AI Summary

Clubbing of clearances: aggregation depends on common ownership, finances or management control, not mere co location.
Clubbing provisions for SSI exemption hinge on economic and organisational nexus rather than mere co-location. Factors triggering aggregation include common ownership or partners, consolidated balance sheets and tax filings, shared funding or management control, and use of separate entities as colourable devices. Independently owned units with separate registrations and finances are less likely to be clubbed; conversely, proof of financial interlinkage or common control supports aggregation of clearances.