TaxTMI 
TaxTMI 
2024 (4) TMI 958
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....ification No. 08/2003-CE dated 01.03.2003-as amended and thereby evading payment of Central Excise Duty by splitting their clearance value. The officers of Central Excise, Ahmedabad-I conducted simultaneous searches at the premises of appellants. The investigation carried out in the case and the documentary evidence collected from the records withdrawn under various panchnama as well as produced by the appellants , others and the oral evidences collected in the form of statements and other documents from the suppliers of raw materials, job workers and buyers of finished goods and on scrutiny of all the private records it appears that all the goods so sold under the invoices of M/s Precision Equipment Co., Vatva, M/s. Pratik Enterprises, Vatva, M/s Precision Rotogravure Pvt. Ltd. and M/s Precisions Industries, Sajipur Bogha were actually manufactured by M/s Precision Equipment Co., Vatva, as evident from the statement of the suppliers, job workers and buyers. Thus, as per the provisions of Notification 8/2003-CE dated 01.03.2003, as amended, the aggregate clearance value of M/s. Precision Equipment Co. Vatva would also include the value of the goods sold under the invoices of M/s....
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.... or same logo or same brand name was used by the machines manufactured and cleared by all the four units. Further, it is also an undisputed facts that : (i) M/s Precision Equipment Co. was a proprietorship firm of Shri Rajubhai Jaisnghani (ii) M/s Pratik Enterprise was a proprietorship firm of Shri Bhagubhai Prajapati (iii) M/s Precision Industries was a proprietorship firm of Shri Prembhai Manushkhani and (iv) M/s Precision Rotogravure Pvt. Ltd. had there directors viz. (i) Rajubhai Jaisinghani, (ii) Bhagubhai Prajapati and (iii) Prembhai Mansukhani. Therefore, it is nobody's case that all the units had common proprietor or that all the partners of one unit were only the partner of another unit. Thus, in a situation like this where there are different proprietors for different units, clubbing of clearance for the purpose of SSI Exemption Notification is not sustainable. Likewise, it is settled law that a company/private limited company has a different entity and its clearances cannot be clubbed with proprietorship or partnership firms. 2.1 He also submits that the period in dispute is from F.Y. 2006-07 to 2011-12. M/s Precision Rotogravure....
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....-2003(152)ELT 194 (Tri. Delhi) Modi Alkalies & Chemicals Ltd. Vs. CCE., New Delhi - 2002(146)ELT 555(Tri.-Delhi) Commissioner of Central Excise, Mysore Vs. Ganesh Enterprises- 2010(262)ELT 1007 (Tri. Bang) Studioline Interior Systems Pvt. Ltd. Vs. Commr. Of C.Ex. Bangalure -2006(201)ELT 250 (Tri. Bang) Girish Electricals Inds. Vs. Commissioner of Central Excise, Mumbai -III 2004(167)ELT 299 (Tri- Mumbai) 2.3 As regard M/s Precision Industries, he submits that although it was not having a separate factory premise, it was purchasing raw material, getting the goods manufactured on job work basis from the other units and was finally selling/ clearing their final product. All the units had separate bank accounts. There was no financial flow back. As the three units were proprietorship firms of three different individuals, they were assessed to income tax separately. They had separate identity. There was no mutuality of interest. They had separate manufacturing facility, separate staff, separate workers, separate electricity connections, and separate machinery. As regard the company M/s Precision Rotogravure Pvt. Ltd. the proprietors of each of thre....
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....e four units only on M/s Precisions Equipment Co. It is not known why the demand is not focused on the other three units. Even if it is assumed that clearances of all the four units were required to be clubbed, why the special treatment given to M/s Precision Equipment Co.? In absence of any independent evidence that all the goods cleared by a so called dummy unit and other two units are manufactured by M/s Precisions Equipment co., Central Excise Duty liability even otherwise could not have been casted only on M/s Precision Equipment Co. Even on this ground alone, the impugned order deserves to be quashed and set aside. 2.7 He also submits that when units are public/private limited companies, incorporated under the Companies Act, they are to be considered independent entity under the Companies Act, they are to be considered as separate units and their clearance could not be clubbed. He placed reliance on the following judgments:- Pimpri Gases Vs. CCE -1990 (49)ELT 474 (T) Commissioner of C.Ex., Surat -I Vs. Goyal Fibers (P) Ltd. - 2009(234)ELT 108 (Tri. Ahmedabad) 2.8 As regard the confiscation and redemption fine he submits that it is settled law that conf....
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....avure pvt. Ltd. had three directors viz. (i) Rajubhai Jaisinghani, Shri Bhagubhai Prajapati and Shri Prembhai Mansukhani. Separate Locations, Central Sale Tax Registration Certificate, Gujarat Commercial Tax Registration Certificate, separate Electricity Meters and separate Bank Accounts. Appellants also produced before us their separate profit & loss accounts, balance sheets, Audit reports, VAT return filed by them, sample bank account statements, purchase accounts and sales accounts. We observed that if M/s. Precision Industries is a dummy unit and all goods cleared under invoices of M/s. Precision Industries are not manufactured by it, then, sale proceeds of clearances should flow to M/s. Precision Equipment Co. However, there is no any financial flow back of funds, department have not even produced single evidence of any such financial flow back of funds from one firm to other firms and also vice versa. Further, as regard the allegation of the revenue that M/s Precision Industries not having manufacturing facility, hence dummy unit. We noticed that law permit manufacture of goods on job work basis. In the present matter it is admitted fact by the revenue itself that M/s Precisi....