JINDAL ELECTRICALS & JINDAL Vs. CCE

JUDGEMENT

(1.) CHALLENGE in these appeals at the instance of the assessee is against the order passed by the Commissioner dated 28.2.2002. The issue relates to clubbing of clearances of the two units, namely, M/s. Jindal Electricals and M/s. Jindal Electric and Machinery Corporation for the purpose of eligibility for benefit of SSI exemption.

(2.) JINDAL Electricals are engaged in the manufacture of automatic voltage controller and industrial transformers since 1985. It is owned by an HUF, of which Shri B.B. Jindal is the Karta. M/s. Jindal Electric and Machinery Corporation is a proprietary concern of Shri B.B. Jindal from 1987. Both the firms were independently claiming benefit of SSI exemption. Show cause notice proposed to club the clearances of the above two units and deny the benefit of SSI exemption. The Commissioner confirmed the demand for the period April 2000 to September 2000. The Commissioner took the view that the extended period of limitation could not be invoked as the appellants had informed the Department the relevant facts. However, he imposed a penalty of Rs. 90 lakhs.

(3.) THE Commissioner referring to the relevant notification observed that the exemption shall not be admissible if the clearances by a manufacturer from one or more factories or from a factory by one or more manufacturers had exceeded the specified limit during the preceding financial year. He took the view that Shri B.B. Jindal is the manufacturer in both the units and, therefore, the clearances of both units should be clubbed.