1988 (1) TMI 172 - AT - Central Excise

Summary

Issues involved: Classification under Notification No. 89/79, denial of exemption, connection between respondent company and other concerns, clubbing of clearances.

Classification under Notification No. 89/79:
The respondent company filed a classification list for their products claiming exemption under Notification No. 89/79 for the year 1979-80. The Assistant Collector denied the exemption, alleging common brand name with other concerns and manufacturing on behalf of those concerns. The Collector of Central Excise (Appeals) set aside the denial, stating the respondent was a distinct legal entity eligible for the exemptions. The appellant-Collector challenged this decision, arguing the lower authority did not consider all grounds for denial.

Denial of exemption and connection between companies:
The Assistant Collector rejected the exemptions based on various grounds, including common brand name and shared workforce among the respondent company and other concerns. The appellant-Collector contended that the clearances of all units should be clubbed. The respondent argued against this, emphasizing the separate legal status of the company and citing legal precedents to support their position.

Clubbing of clearances:
The Tribunal considered the arguments from both sides and found no evidence of a connection between the respondent company and the other concerns mentioned. Relying on relevant legal decisions, the Tribunal concluded that the clearances of the respondent company should not be clubbed with those of the other units. The appeals of the appellant-Collector were rejected, affirming the eligibility of the respondent for the exemptions claimed under Notification No. 89/79.

*Separate Judgement:*
No separate judgment was delivered by the judges in this case.