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TMI Blog2000 (11) TMI 456X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) Shri C.M. Handa Rs. 1 lakh - Penalty - (iii) Shri D.K. Jain Rs. 1 lakh - Penalty - (iv) Shri R.K. Sharma Rs. 50,000 - Penalty - 2. Shri R. Pal Singh, Ld. Consultant, mentioned that the demand of duty has been confirmed and penalties have been imposed as the clearance of excisable goods effected by M/s. D.M. Gears and M/s Chandra Auto Engineers Pvt. Ltd. have been ordered to be clubbed by the Commissioner under the impugned Order. The Ld. Consultant emphasized that there was no financial flow back between these two units nor there was any allegation to that effect in the notice; that the statements relied upon by the Department do not bear the signature of any Central Excise O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d whenever one unit used electricity from the other s connection, charges were debited to the using unit; that clubbing cannot be done for the reason that the one unit uses electricity generated by other unit; that all directors of the two units were not relatives; that in any case commonality of directors or the units are being run by members of the same family does not lead to the conclusion that both units are one. Finally the learned Consultant submitted that their financial position is very bad as they had incurred a loss of Rs. 1692 lakhs. 3. Opposing the application, Shri M.P. Singh, Ld. D.R., referred to the findings of the Commissioner in para 24 of the impugned order which reads in part as under : The overall control of Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 114) E.L.T. 1009 (T) wherein value of clearance of two units were clubbed on account of common procurement of raw materials, centralised payments to employees, common storage facilities, common operation of bank accounts and other financial arrangements. He finally mentioned that a unit which has sales to the extent of Rs. 3.74 crores cannot claim financial hardship; that the liability to pay Govt. tax should not be linked to the profits earned by an assessee. In reply the learned Consultant pointed out that the Revenue claims that the both the units were controlled by Shri Rajiv Gambhir but no question about this was put to him when his statement dated 24-7-97 was recorded. 5. We have considered the submissions of both the sides. The iss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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