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TMI Blog1994 (9) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... oes not disclose the material or the reasons on which the charges are based. 3. It merely states that they will not be entitled to the benefit of exemption Notification No. 25/84 as amended by Notification No. 138/86 for their product paper, as the M/s. Pudumjee Pulp and Paper Mills Ltd. and M/s. F. Pudumjee and Co. are two factories (units) of one and the same manufacturer and the total clearance of the both the units taken together exceeds the prescribed limits of clearances under the above notifications. 4. The order-in-original dated 28-2-1989 was passed by the Assistant Collector, Pune. 5. In this order the Assistant Collector has based his finding on the order of the Collector (Appeals) dated 2-9-1988 but this order of Learned C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30-12-1985 M/s. Pudumjee and Company was a wholly owned subsidiary company of the holding company i.e. M/s. Pudumjee Pulp and Paper Mills (P.P.P.M.). After 30-12-1985, a part of the shareholding owned by M/s. P.P.P.M. was diluted but M/s. P.P.P.M. had retained a minimum of 50% shareholding in M/s. F. Pudumjee Co. and by virtue of this, M/s. F. Pudumjee Co. was still a subsidiary of M/s. Pudumjee Pulp and Paper Mills Ltd. This is borne out by the certificates issued by M/s. Kanja Co., independent Solicitor and Mr. A.T. Hozdar, Chartered Accountant. Both the certificates dated 21-1-1989 and 3-2-1989 respectively speak of the fact that M/s. F. Pudumjee Co. ceased to be the subsidiary of M/s. Pudumjee Pulp and Paper Mills Ltd. from 24- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . v. The Commissioner of Wealth Tax, Madras as reported in AIR 1969 Madras 359, which deals with the position under the Companies Act. 11. It is his submission that this Tribunal has also followed the ratio of these judgments and other such judgments and in particular he would draw attention to the order of the Tribunal in the case of Government Ceramic Service Centre v. Collector of Central Excise as reported in 1983 (13) E.L.T. 1215. However, at this stage he would emphasise that merely the factum of percentage of share holding or purchase of shares could not be considered as the determining factor for allowing or disallowing the benefit of the exemption notification. 12. He has, however, no objection if even now the department was in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liberty to take a view based on the material on record. 17. It was his submission that the Collector (Appeals) has referred to the Soliceters and Chartered Accountant s certificates produced by the appellants themselves and, therefore, was justified in taking them into account and basing his decision upon them. 18. It was also his submission that he would like to refer to Tribunal s order in the case of M/s. Gammon Far Chems Ltd. v. Collector of Central Excise, as reported in 1994 (71) E.L.T. 59 (Tri.) = 1994 (1) R.L.T. 334 wherein the clubbing of clearances of a holding company and its subsidiary company for determination of the eligibility to exemption was upheld, inter alia, on the ground of there being a facade. 19. However, sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for making or manufacturing or producing such goods and plant and machinery of their have been detained till the amount of Rs. 56,84,913.50 was paid or a stay order from the proper authority was produced and he prays that necessary observations and directions may be made in this regard so that the position is clear to the authorities below. 24. We observe that as in this matter stay has been granted and simultaneously the appeal has been heard and disposed of in the above terms the aforesaid order of Assistant Collector dated 26-8-1994, automatically becomes infructuous and the goods and other articles if any detained may be released forthwith. 25. This is clarified for the benefit of all concerned. - - TaxTMI - TMITax - Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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