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TMI Blog2016 (11) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... eping raw materials and finished goods and these are stored in common premises only - Held that: - it is clear that there is complete common administration and financial control of the two firms. Day-to-day affairs of HPC are managed by the partners of the HP - The brand name apparently cannot belong to two different entities if the appellants arguments of HP and HPC are two different legal entities for SSI exemption then use of common brand bane will deprive atleast one of them from SSI exemption. Regarding the claim of the appellant for exclusion of export turnover, we find that the appellants themselves did not export the product - in the absence of categorical evidence supported by documents, the claim of the appellant cannot be co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... main allegation is that HP floated another unit HPC, with wives of partners of HP, with an intention to bifurcate sales figures and to avail SSI exemption under Notification No. 8/2003-CE. It was alleged that these two partnership firms cannot be considered as separate legal entities for the purpose of calculation of SSI exemption and there turnover has to be clubbed together for this purpose. The original authority adjudicated the case and held that the total value of clearances including clandestine clearances exceeded the threshold limit for SSI units. He accordingly confirmed duty demand of ₹ 1,28,26,111/- on HP and imposed penalty of equivalent amount on them. Further, penalties of ₹ 1,30,000/- each was imposed on all other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly eligible for cenvat credit of raw materials. (e) The raw materials, semi finished goods and finished goods are not liable for confiscation under Rule 25 of Cenvat Credit Rules, 2002. They have not violated any provisions of law and as such the seizure and confiscation of the goods from their premises is legally unsustainable. 3. Ld. Counsel for the appellants relied on various decided cases in support of his assertions. 4. Ld. AR reiterated the findings of the original authority and submitted that HPC is nothing but a creation of both partners of HP. The fact that there is a common management, sharing of common facilities, cash flow, other common benefits derived by both the units will clearly indicated that the appellants en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on between the partners of the firms common procurement of raw material, intermixed documentation of sale of final products were brought on record during the proceedings. The statements recorded during the investigation clearly brought out the common procurement of raw material and their consumption in these two units without any restriction. On careful consideration of the evidences available in this regard, it is clear that there is complete common administration and financial control of the two firms. Day-to-day affairs of HPC are managed by the partners of the HP. As already noted that both the firms belong to the same family i.e. one firm owned by husbands as partners another firm is owned by wives as partners. In such situation, when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enial of SSI exemption in terms of Notification No. 8/2003-CE. 9. Regarding the claim of the appellant for exclusion of export turnover, we find that the appellants themselves did not export the product. They were claiming that the exports were through merchant exporters. In such a situation, production of Form H alone will not be sufficient to establish the fact of export out of country. Merchant exporters documentation with a clear link to the goods produced by the appellant are required. We find that the original authority has clearly recorded that no document has been produced by the appellants pertaining to supply of goods for export. The appellants have submitted various Forms H alongwith a chart containing details of shipment made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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