- (1.) M/s Superior Products, respondent No. 1 herein and M/s. Superior Pets (P) Ltd., respondent No. 3 herein, which are small scale industries and which had been granted SSI exemption under Notification Nos. 16/97 dated 1.4.1997 and 8 & 9/98 dated 2.6.1998 were issued two show cause notices to show cause as to why clearance of both the units be not clubbed together as both the units had common Directors and that one person was looking after the affairs of both the units. It was alleged that second unit was created only to get the loan and did not have even complete machinery in its premises to manufacture the final product. They were also asked to show cause as to why packing charges for the goods which were produced by them be not included in the assessable value.
(2.) The assessing officer confirmed the demand, aggrieved against which the respondents filed separate appeals before the Commissioner(Appeals) who partly accepted the appeal. It was held that both the units be clubbed together for the purpose of SSI exemption. Insofar as packing charges are concerned, it was held by the Commissioner that packing charges could not be included in the assessable value as the material for the same had been supplied by the buyers to the assessee free of cost.
(3.) Aggrieved against the order passed by the Commissioner of Appeals, both the revenue as well as the assessee filed appeals before the Tribunal. Tribunal by its impugned order has accepted the appeals filed by the assessee and dismissed the appeals filed by the revenue.;