TaxTMI 
TaxTMI 
TaxTMI 
2023 (6) TMI 191
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....athered that the Appellant No.1 is indulging in evasion of duty and accordingly a search was carried out in the factory premises of M/s Orkay Gears, M/s Orkay Transmission, M/s Hitesh Engineering and M/s Omkar Technologies. Investigation conducted by the department has brought on records that out of four units, none of them are having full-fledged machinery to carry out the complete manufacturing process of Gears, Gear Boxes and Parts thereof, at their own. It also came on record that though clearance of manufactured goods for substantial amount has been shown from M/s. Omkar Technologies, the said unit did not have any machinery installed in its shed. It also has come on record that the cycle of manufacturing process is completed when the goods travel through all the three units. Therefore, it is felt that all the three unit cannot be considered independent units manufacturing Gears, Gear Boxes and parts thereof and so as to avoid duty liability, four units have been created on paper without having proper manufacturing facilities. It therefore felt that above four units are not separately eligible for the SSI Exemption contained in the Notification No. 8/2003 -CE dated 01.03.2003,....
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....stence in 2002 and Orkay Technologies in November, 2006. It is not understood in such facts why Orkay Gears should be considered main and others as abettors. 3.2 He further submits that in this SCN itself, statement of different proprietors are recorded. In para 5,6,7 & 8 all of them have clarified that they are doing certain activities on their own machinery and remaining on Jobwork. All purchase raw materials directly and pay for the same from their accounts. All sell their goods to customers separately by taking orders on phone or orally. All of them receive payment in their bank accounts. Omkar Technologies have no machines but they get their goods manufactured on Jobwork basis. All of them have the Jobwork invoices and have paid through their bank accounts. All have labour and their own premises. They are registered under innumerable acts and laws. All of them have into existence independently at different time belonging to same proprietor. So it is not the case as if there was a partnership firm who subsequently show paper divisions for availing exemption. Each of the proprietors started his business independently at different point of time. There are concrete walls between ....
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....ords that out of four units, none of them is having full-fledge machineries to carry out the complete manufacturing process of gears, gear boxes and parts thereof of their own. The above said four units were created on paper to wrongly avail SSI exemption provided under Notification No. 8/2003-CE. Therefore the above said four units are not separately eligible for SSI exemption and the clearance shown to have been made in the name of other three units have to be clubbed with the value of clearances of M/s Orkay Gears so as to determine their eligibility for exemption contained in Notification No. 8/2003-CE. 4.1. He placed reliance on the following judgments. * Supreme Washers (P)Ltd Vs. Commissioner of Central Excise Pune. - 2003 (151) ELT 14 (SC) * L.R. Industries Vs. Collector of Central Excise, Pune - 1999 (114) ELT 550 (Tribunal) * Heemanshu Traders Vs. Commissioner of C.Ex., Surat- 2003 (153) ELT 119 (Tri.-Del.) * Amar Enterprises Vs. Commissioner of Central Excise, Delhi - 2017 (347) ELT 548 (Tri. Del.) * S.N. Industries Vs. Union of India - 2015 (324) ELT 138 (Raj.) 5. We heard the parties at length and gone through submissions, case laws cited carefully. 6. In ....
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...., drilling, taping, finishing, fitting/ assembly, testing, coloring, packing etc are being carried out, in shed No, 43 (Of M/s. Omkar Technologies) from where the goods are shown to be manufactured is owned by Shri Dhanik Girdhar Patel and the same is used for final dispatches of finished goods and storing raw materials only and there is no facility to carry out any manufacturing activity. We also notice that the proprietor of the above said four units, in their respective statements have admitted the above facts and also admitted that in case of necessity in business they lend money to each other without any condition as they are all members of the one family, they also agreed with the contents of the Panchnama dated 07.02.2007 as well as with the statement dated 07.02.2007 of Shri Suresh Patel. We find that the above facts are not disputed by the Appellants during the entire proceedings. 7. After having gone through the above undisputed facts on record, we are of the considered view that manufacture and clearances made by the said four units availing the benefit of Notification No. 8/2003-CE have to be clubbed together as we hold that these units are one and the same, when their....