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TMI Blog2018 (9) TMI 1197X X X X Extracts X X X X X X X X Extracts X X X X ..... s a private limited company with Shri Dhan Singh Sharma, as its Managing Director and his wife and son, Mrs Kaushalya Jangir and Shri Kunal Jangir respectively, as its Directors. It is engaged in the manufacture of various articles of wood such as doors, chowkhats and furniture items etc. chargeable to Central excise duty under Chapter 44 and 94 of the Central Excise Tariff. They availed SSI exemption under Notification No. 8/2003-CE. M/s D.S. Woodtech Limited (hereinafter referred to as DSW) is also a private limited company with Shri Dhan Singh Sharma, and his wife Mrs. Kaushalya Jangir as Directors and his son Shri Dinesh Jangir as Managing Director. This unit is also manufacturing the same items as DSD and is availing SSI exemption unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the officers also found that Income Tax officers on 07.02.2007 had conducted survey and search of the premises of DSD and DSW in the course of which, huge unaccounted sales had been unearthed. As a result of survey, while DSD in their revised balance sheet for 2005-2006 and 2006-2007 showed 50.57% and 69.07% increase in sales, DSW in the revised balance sheet of the same year showed 52.60% and 45.62 increase, respectively in their sales. The study of assessment order passed by Income tax Department in respect of DSD and DSW for 2005-2006 and 2006-2007 indicated huge under reporting of production and sales. Statement dated 23.04.2010 of Shri D.P. Singh, General Manager, DSD indicated that though he was is the employment of DSD, he was hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lants are before us. 6. The ld. Counsel for the appellant submits that demands have been raised against them on three grounds; (a) M/s. DSD and DSW are the same and therefore, their clearances are to be clubbed together. (b) The appellant has shown fake trading entries in their balance sheet which is none other than the clandestine removal of the goods therefore, they are liable to pay duty; and (c) The appellants are liable to pay duty on polishing charges, labour charges, hardware charges etc. It is his contention that both the units are Private Limited Companies, having different Directors and are located at a distance of more than 20 Kms. from each other and are having Central Excise registration from time to time. In that circumst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learing doors/ their final goods to their customers and after clearance of the goods, these doors were fitted at the site of the buyers with hardware and other materials. Thereafter, the polishing is done and these activities are post manufacture activities rather post clearance activities from the factory. These charges are not includable in the assessable value therefore, charge of under valuation is not sustainable. Therefore, he submits that impugned order is to be set-aside. 7. On the other hand, ld. AR supported the impugned order and submitted that DSD is only an extension of DSW and has no independent existence. Both the units are controlled by Shri D.S. Sharma and are being run as one unit; that the goods manufactured in the premi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce sheet is actual sales and (c) the appellant has undervalued their final goods. We deal with the each ground as under:- (a) Both DSD and DSW are the same, their sales are to be clubbed together- We find that in this case, both the units were manufacturing the same product and are Private Limited Companies. The Limited Company cannot be held to be a one Company. Moreover, both the units are situated at the distance of more than 20Kms. from each other and from time to time obtained Central Excise registration. As their clearances were below the SSI exemption limit, therefore, surrendered their Central Excise registration from time to time. The said registration was granted to them after ascertaining their correctness that the both the u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al or not : It is an admitted fact in the show cause notice itself recorded that both the units have shown fake trading. When Revenue itself is admitting in the show cause notice that entries are fake and without establishing the fact of manufacturing of the goods indicating how much inputs was required, how much goods have been produced, how much electricity has been consumed, in the absence of any such corroborative evidences, merely on the basis of fake entries which are to obtain loan from banks etc., it cannot be held that fake entries are of clandestine removal of goods. To establish charge of clandestine removal of the goods, several factors to be brought on record such as, procurement of inputs, consumption of electricity, employm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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