2015 (10) TMI 345 - SCH - Central Excise

Denial of SSi exemption - Value of clearances - Clubbing of clearances - Supreme dismissed the appeal filed by Revenue by holding that it is nowhere pointed out in the show cause notice as to which unit is the principal unit and which is the dummy one, we are of the opinion that Customs, Excise and Service Tax Appellate Tribunal, New Delhi (CESTAT) has rightly held that there could not have been the clubbing of the two units. - Appeal was filed against the decision of Tribunal 2005 (2) TMI 294 - CESTAT, NEW DELHI wherein Tribunal held that it has not been disclosed that which out of the two firms, was a principal firm and which was a dummy one. Only inter se relationship of the partners of both these firms and availment of certain facilities by them commonly, had been alleged in the show cause notice. The duty demand had been raised against both of them. The adjudicating authority also accordingly confirmed the duty demand against both the firms with penalties. The order of the adjudicating authority being contrary to the law laid down by the Apex Court 1997 (5) TMI 50 - SUPREME COURT OF INDIA , in our view, has been rightly set aside by the Commissioner (Appeals).

Summary

The Supreme Court dismissed the appeals, affirming the Customs, Excise and Service Tax Appellate Tribunal's decision that there could not have been the clubbing of two units due to lack of clarity in the show cause notice.