2005 (12) TMI 392

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....railers should be considered as only one unit for the purposes of SSI Exemption. There were other violations of Central Excise Act such as under-valuation, clandestine removal and also manipulation of records. Both the units have common partners. They are in the same premises. They have common infrastructure. One Shri H.P. Shashidhar Rao, a partner in both the units managed the entire show. In respect of trailers manufactured by one unit, payment has been obtained by the other unit. It has also been found out that in order to reduce the value of clearances in the invoices in many cases, the appellants indicated the sale of chassis assembly in the invoices while records procured from the banks indicated the sale of complete trailers. Lot of ....

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....4)     Both the units have separate registration with Sales Tax, Panchayat, Electricity Board, Department of Industries, and Banks. (5)     Both the units have got independent infrastructure. (6)     Only for the purpose of bank over-invoicing was resorted to in the proforma invoice. After the sanction of the loan by the bank, extra price charged as per the proforma invoice was being refunded to the customers. Therefore, the assessable value should be determined from the regular invoices. (7)     The trailers are accessories to tractors, jeeps or power tillers. Therefore, they are bound by the motor vehicles and liable for registration with RTO. As per ....

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....that there is no clear demarcation between the activities of the two firms. The brand name Bhagya Lakshmi used indiscriminately as admitted by the Managing Partner. The Managing Partner has himself declared that Rao Industries and Rao Trailers are one and the same. The appellants were unable to distinguish and identify the trailers manufactured by each unit. No balance sheets, accounts reports have been produced to establish that the amounts received on behalf of the other unit was a commercial transaction. The appellate authority relied on Tribunal's decision in the case of Metapack & Others - 2003 (161) E.L.T. 1052 (T) = 2000 (40) RLT 1039 (T) wherein it is held that where members of one factory are partners, managed by one person, financ....