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TMI Blog2009 (5) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... lity of the minimum machinery required for the manufacture of final products drives the lost nail in the coffin of EPI’s claim that they were an independent unit. We therefore, agree with the lower authorities that EPI is only a shadow concern of MEPP which was floated to avail improper SSI exemption. – Clubbing of clearances is upheld - In respect to unit in which son being proprietor owner of one firm, and in another firm, partner with his mother – Mutuality of interest and financial flow back between the units - The evidence on record also establishes that bills for purchase of materials by one unit have been settled by another unit. All these points leads to the inescapable conclusion that MFE and EPI were only facades companies floated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g 1993-94 and manufactured FRP/PVC products in the factory during 1993-95 and cleared the goods in the name of EPI and during 1995-96 a private limited company MEPP was created and the goods continued to be cleared in the name of MFE and EPI and thus clearances made in the name of the above three units were required to be clubbed and that excise duty was chargeable on clearances in excess of Rs. 30 lakhs value; up to 1994-95 the value of dutiable goods of all the three units was within Rs. 30 lakhs but during 1995-96 and 1996-97, the value of clearances exceeded Rs. 30 lakhs and since MEPP had cleared the goods in the name of MFE and EPI from 1995 onwards, duty was chargeable from MEPP. The department also held that MEPP had wilfully suppre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lam Limited and the mat materials such as surface mat, chopped stranded mat etc. were being supplied by M/s. FGP Ltd. These raw materials were to be used mixing in suitable proportion with catalyst and accelerator. The type of polyester resin was decided according to the purpose to which the tanks or pipelines were subjected to use. (iii) The tanks and other process vessels will be fabricated after making the necessary mould according to the dimensions and then FRP line by hand laid up, filament winding technique making use of the filament wound machine installed at our workshed. Here again, the type of resin was to be chosen according to the service conditions to which the pipelines would be used." The non-availability of the minimum m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is of such belief. The plea that RT-12 returns were being filed regularly by MFE and EPI, and hence clearance by the two units was within the knowledge of the department is rejected for the reason that this is a new plea which was not raised either in the reply to the Show Cause Notice or in the appeal before the lower appellate authority and such plea has not been raised even in the present appeal and the plea also remains unsubstantiated. Therefore, MEPP's intention to evade payment of duty is clearly evident and invocation of the proviso to Section 11A of the Central Excise Act, 1944, for the purpose of demand of duty for the extended period is justified. For the same reason, penalty upon MEPP is also warranted. 6. In the light of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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