1976 (10) TMI 38

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....ovided exemption to the effect that the steel furniture up to the value not exceeding rupees one lakh cleared on or before the 1st day of April in any financial year by on bahalf of a manufacturer from one or more factories for some consumption would be exempted from excise duty, provided that the exemption would not be applicable to a manufacturer whose value of steel furniture cleared in the previous financial year had exceeded rupees two lakhs. Petitioner claimed exemption and approached the Assistant Collector of Central Excise at Cuttak for an appropriate order. The said authority heard the petitioner and by order dated 27-8-1974, refused to entertain the claim of exemption holding that the petitioner and a partnership firm by the trad....

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.... "From a reading of the Notification it would be apparent that the intention of the Government is to provide to small scale manufacturers some concessions by way of exemption from duty of excise so that they would be in a position to market their products in competition with the large scale manufacturers. It does not appear that this concession should be admitted to manufacturers of large scale establishments having more than one unit with the intention of availing the concession separately for each unit. The language of the notification is also very clear to emphasis the fact that the exemption is applicable to a manufacturer and not to individual factories even if they are functioning in different names. In the present case both Metale....

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.... of the company to the shareholders but the interest of the shareholder either individually or collectively does not amount to more than a right to participate in the profits of the company. The company is a juristic person and is distinct from the shareholders. It is the company which owns the property and not the share holders............" 7. There are circumstances when the Court is entitled to lift the veil of incorporation and take stock of the actual situation. Palmer in his treatise on Company Law (21st Edn.) at page 133 gives a list of instances where the veil of incorporation is lifted. They are :- (i) When companies are in the relationship of holding and subsidiary (or Sub-subsidiary) companies; (ii) Where a shareholde....