2000 (10) TMI 438 - AT - Central Excise

Summary

Issues:
1. Clubbing of clearances for SSI exemption denial.
2. Demand of duty on dummy unit.
3. Application of Rule 9(2) for clandestine removal.

Clubbing of clearances for SSI exemption denial:
The appeals challenged the Commissioner's order denying SSI exemption to one unit and clubbing clearances of two units. The appellant argued against clubbing, citing the independence of the units. The Tribunal noted the absence of Section 37B order application for clubbing, deeming the order legally flawed. The order was set aside for re-adjudication as per Section 37B.

Demand of duty on dummy unit:
The Commissioner demanded duty from a unit deemed sham and dummy. The appellant contended duty imposition on such units contradicted Tribunal precedents. The Tribunal agreed, finding the duty determination on sham units violated established law. The order was set aside on this ground.

Application of Rule 9(2) for clandestine removal:
The Commissioner demanded duty under Rule 9(2) for alleged clandestine removals. The appellant argued against the applicability of Rule 9(2) due to duty-paying documents accompanying intercepted goods. The Tribunal found no clear finding on the clandestine nature of clearances, questioning the demand under Rule 9(2) and Section 11A. The order was remanded for re-determination in accordance with the law.

In conclusion, the Tribunal set aside the impugned order and remanded the matter for fresh consideration based on the identified legal flaws. The issues of clubbing clearances, duty imposition on dummy units, and the application of Rule 9(2) were critically analyzed, leading to the decision for re-adjudication in compliance with legal principles and precedents.