TO AVOID REGISTRATION UNDER EXCISE

This query is : Resolved

CA Abhishek Singh (Querist)
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07 March 2010 HELLO EVERYONE,

ONE OF OUR CLIENT IS PROPRIETOR OF 2 FACTORIES(same jurisdiction, registered under mvat)
AND

TURNOVER OF BOTH FACTORY IS LIKELY TO EXCEED THE SSI EXEMPTIN LIMIT.

TO AVOID THIS ONE OF MY FRIEND SUGGESTED
TO MAKE HIS WIFE PROPRIETOR OF ONE FACTORY.

IS THIS PROPER WASY OF AVOIDING REGISTRATIN UNDER EXCISE.

THANKS IN ADVANCE
MY ID abhipcc@rediffmail.com

Vipin Gupta

Vipin Gupta (Expert)
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07 March 2010 You can make his wife proprietor of other concern but there should be clearly existence of two units seperate machinery, seperate premises, seperate pan no., sales tax no. Case Ref Commissioner of Central excis, Ahmedabad .I V Arbuda Industries 2008 (230) ELT 159 (Tri Ahmd) and 2008 (230) ELT 163 (Tri - Ahmd)

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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11 March 2010 yes u can make with making clearly existence of two units separate machinery, separate premises, separate pan no., sales tax no.

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ajay taneja

ajay taneja (Expert)
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02 June 2010 you can do as stated by above said experts but u have to keep in mind that the prop of other firm should not be involve in day to day working of the business of his wife. if its proves that he is involve in day to day working of his wife firm u will not be able to take the benefit of the same.