2002 (3) TMI 198 - AT - Central Excise

SSI Exemption - Value of clearances - Clubbing of - Demand - Limitation - Extended period - Modvat/Cenvat

Summary

Issues:
Three appeals arising from a Common Adjudication Order dated 11-3-91 passed by Collector, Central Excise.

Analysis:
1. Facts and Allegations:
- Appellants M/s. Meta Craft and Meta Pack manufacture metal containers.
- Central Excise Officers found discrepancies in stock and financial transactions between the units.
- Collector confirmed excise duty demand, imposed penalties, and ordered confiscation based on findings of commonality and financial assistance.

2. Defence by Appellants:
- Appellants argued separate registrations, job work payments, and absence of common partners negate the need to lift the corporate veil.
- Cited precedents emphasizing factors like common facilities not conclusive for clubbing clearances.

3. Time Bar and Duty Calculation:
- Appellants claimed time-barred demand due to approved classification lists and granted benefits.
- Disputed duty calculation, citing inflated amounts and correct payments made.

4. Department's Stand:
- Emphasized suppression of full manufacturing details justifying extended limitation period.
- Relied on precedents for clubbing clearances based on common control and financial relationships.

5. Judicial Analysis:
- Found common control, financial interdependence, and shared resources indicating clubbing of clearances justified.
- Upheld duty demands, confiscations, and penalties based on established financial connections and common operational control.
- Reduced redemption fine and adjusted penalties considering the roles and responsibilities of the involved parties.

6. Conclusion:
- Upheld clubbing of clearances, duty demands, and confiscations based on established relationships and operational control.
- Adjusted penalties and fines considering individual roles and mitigating factors.
- Disposed of all three appeals with modified penalties and upheld duty demands and confiscations based on established financial connections and shared operational control.