2017 (3) TMI 1452 - AT - Central Excise

SSI Exemption - clubbing of clearances - Held that - both the units are separate, so clearance of the goods cannot be clubbed - matter remanded for re-examination of the facts. Valuation - demand u/s Section 4A on the only ground that impugned products were sold through the appointed dealers and there were no direct sale to the industrial consumers - declaration u/r 34 - Held that - the assessee has failed to file the declaration u/r 34 of the Standard of Weights and Measures (PC) Rules, 1977. When it is so, then in both the appeals, we restore the matter back to the Commissioner to examine the issue in the light of the above observations denovo. Penalty not imposable - matter on remand - appeal allowed by way of remand.

Summary

Issues involved:
1. Clubbing of clearances for SSI exemption
2. Valuation under Section 4/4A
3. Failure to file declaration under Rule 34

Issue 1: Clubbing of clearances for SSI exemption
The common issue in the appeals pertains to the clubbing of clearances for SSI exemption. The Commissioner held that goods were manufactured by one group and denied SSI exemption to other companies due to aggregated clearances exceeding the limit. However, the Commissioner (Appeals) allowed the benefit of SSI exemption by setting aside the original order, stating that both units are separate entities and clearances cannot be clubbed. The Tribunal restored the issue to the Commissioner to re-examine the matter in light of the Commissioner (Appeals) order, allowing fresh evidence if necessary.

Issue 2: Valuation under Section 4/4A
The second issue in the appeals concerns valuation under Section 4/4A. The appellants argued that their products fall under Chapter Heading 8536.90 and should be assessed under Section 4A, not Section 4, as they were sold through dealers without specific markings for exclusive industrial use. The Commissioner (Appeals) confirmed demands based on sales through dealers. The Tribunal referred to a previous case before the Supreme Court and ruled in favor of the appellants, setting aside the orders and allowing their claim based on the precedent.

Issue 3: Failure to file declaration under Rule 34
In two appeals, the appellants failed to file a declaration under Rule 34 of the Standard of Weights and Measures (PC) Rules, 1977. The Tribunal directed the Commissioner to re-examine the issue considering this failure, allowing additional evidence and providing necessary opportunities to the appellants for a fresh review.

The Tribunal disposed of all appeals and cross-applications, canceling penalties imposed by the Commissioner (Appeals) where orders were set aside. The Tribunal found no justification for the penalties after considering the facts and circumstances of the cases.