Order date – 24 March 2023

Parties – M/s Himalaya Equipments Vs C.C.E. & S.T.-Ahmedabad-iii

Facts –

• The Appellate, M/s. Himalaya Equipments have separate registration, bank account and all other registrations and licenses with various government authorities.
• The value of M/s. Himalaya Engineers & Manufacturers was clubbed with that of the present appellant, which exceeded the eligible limit of SSI exemption under notification no. 8/2003-CE, and the appellate was held liable to pay the excise duty by impugned order-in -original.
• No show cause notice was issued to M/s. Himalaya Engineers & Manufacturers, hence the present appeal has been filed.

Issue –

• Whether the value of M/s. Himalaya Engineers and Manufacturers can be clubbed with the value of the Appellant?

Order –

• The Tribunal on examining the constitution of both the firms, found that in both the firms, the partners are same with the same sharing of 25% each therefore, though there is a different name of the firm, but both the firms are owned by same partners therefore, there is a common ownership by same partners.
• Further it mentioned that the ownership of both the units i.e. M/s. Himalaya Equipments and M/s. Himalaya Engineers and Manufactures is with the same partners which is to be considered that the one manufacturer has cleared the excisable goods from their both the factories therefore, for the purpose of exemption limit as well as for the purpose of eligibility limit of Rs.300 lakhs, the value of clearance of both the factories have to be taken together. Therefore, we concur with the adjudicating authority that the value of M/s. Himalaya Engineers and Manufacturers is includable in the value of the appellant's firm.
• With regard to the non-issuance of the show cause notice the Tribunal stated that contention of the learned counsel is applicable only in those cases where two different firms of different ownerships exists.
• The present appeal is dismissed, the impugned order is upheld.