https://www.taxtmi.com/caselaws?id=73857 Small-scale exemption notifications applied only to clearances by or on behalf of a manufacturer from one or more factories, so separate exemption could not be claimed where two concerns were in substance one manufacturing arrangement. The Tribunal found that the units shared premises, machinery, electricity connection and trade name, with no reliable proof of a genuine partition or independent infrastructure for the later unit. On those facts, the second unit was treated as a sham and colourable device created to obtain additional duty-free clearances, and the exemption was denied. The decision confirms that tax planning is permissible, but exemption cannot be multiplied through a fictitious division of business. en-us Fri, 20 May 1988 00:00:00 +0530 Sat, 04 Jun 2011 10:23:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=73857 Small-scale exemption notifications applied only to clearances by or on behalf of a manufacturer from one or more factories, so separate exemption could not be claimed where two concerns were in substance one manufacturing arrangement. The Tribunal found that the units shared premises, machinery, electricity connection and trade name, with no reliable proof of a genuine partition or independent infrastructure for the later unit. On those facts, the second unit was treated as a sham and colourable device created to obtain additional duty-free clearances, and the exemption was denied. The decision confirms that tax planning is permissible, but exemption cannot be multiplied through a fictitious division of business. Case-Laws Customs Fri, 20 May 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=73857