Nms Babu vs The Commissioner Of Central Excise on 17 November, 2016
7.1.3?Thus, if there is evidence on record to prove that a particular person, whether natural or juristic, has comprehensive financial and management control over several entities and is the actual beneficiary of their activities, the clearances of the factories owned by these entities are to be clubbed for the purpose of determining their eligibility for SSI Exemption by treating them as the units of only one manufacturer, even if those units are owned by different public limited companies, private limited companies or partnership firms. If on clubbing their clearances during the preceding financial year, the aggregate value of the clearances is found to be exceeding the threshold limit for SSI Exemption, the SSI Exemption would have to be denied to each of them and if each of them is a functioning unit and not a non-functional dummy unit, the duty can be demanded separately from each unit.
(Emphasis supplied)
7.4.3 It is to be noted that CESAT Delhis above decision in the case of British Scaffolding India Pvt. Ltd. (supra) has been endorsed by the Honble Supreme Court in cases of NEC Industrial Project (supra) and Euro Scaff (India) Ltd. (supra)
7.4.4 The Honble Allahabad High Court in the case of Premium Suiting Pvt. Ltd. (supra) inter alia in para 5 to 7 observes as under: