Order date: 25 January, 2023

Parties: C.C.E. & S.T.-RAJKOT vs KICH INDUSTRIES

Facts:

• The Respondent, KICH INDUSTRIES, was alleged to have floated dummy firms/ companies, therefore, the value of the aforesaid firm/ companies is clubbable in the clearance value of the Respondent M/s Kich Industries. Accordingly, separate SSI Exemption to all the dummy units are not applicable.
• Learned Commissioner (appeals) dropped the demand by allowing the appeal of the respondent on the ground that for the earlier period this Tribunal in the appellant’s case as reported at 2013 Kich Industries vs Commissioner of Central Excise-Rajkot, has held that all the units are separate and clearance value of those units cannot be clubbed with the respondent.
•  Therefore, the revenue filed this appeal.

Issue: 

• Whether the various firms and companies are dummy firms/companies of the respondent?

Order:

• The Tribunal observed that for the earlier period after detailed investigation and relying of various evidences, the adjudicating authority had confirmed the demand clubbing the clearance value of all other alleged dummy firms/ companies in the clearance value of the respondent. The same was challenged before this Tribunal, this Tribunal vide judgment reported at Kich Industries (supra) allowed the appeal of the respondent. In the present case, no fresh investigation has been carried out, only the earlier proceeding of the aforesaid case has been followed.
• Accordingly, there is no infirmity in the impugned order passed by Learned Commissioner (Appeals). Hence, the same is upheld. Revenue’s appeal is dismissed.