9911796707
TMI Blog2004 (7) TMI 448X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis of clubbing of its clearances with those of the other appellant. The demand is on M/s. Bright Gems Company ("Bright Gems", for short). Their clearances of specified goods have been clubbed with those of M/s. Expo Gems Company ("Expo Gems", for short) for the purpose of computation of aggregate value of clearances and consequent demand of duty. The finding recorded by the Commissioner is that, upon such clubbing of clearances, the aggregate value of clearances of "Bright Gems" exceeded the exemption limit prescribed under SSI Exemption Notification No. 175/86-C.E. (as amended) for the period 1986-87 to July 1990. The operative part of the Commissioner's order reads as under :- "I hereby confirm the demand of duty amounting to R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ems" lent a loan of Rs. 37,927/- without claim of interest to "Expo Gems". There is also a finding to the effect that an employee (Smt. Mahalakshmi) of "Bright Gems" assisted "Expo Gems" in accounting matters and that Shri P. Ganesan (partner of Bright Gems) assisted his wife (partner of Expo Gems), without remuneration, in the affairs of the latter firm. 4. We have heard both sides. It is submitted by learned Counsel for the appellants that the findings of the Commissioner are not enough to sustain the Department's allegation of mutuality of interest between the two firms. We have also heard learned DR on this aspect. The Commissioner found mutuality of interest between the two manufacturing units on the basis of the fact that one of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Excise Act. They had also raised the plea of time-bar. Counsel has submitted that these contentions were, by and large, ignored by the adjudicating authority. After a perusal of the reply to the show cause notice and the impugned order, we find force in these submissions of the counsel. 6. Having rejected the Commissioner's finding that there was mutuality of interest between the two firms, we rule out clubbing of clearances and set aside the demand of duty which was raised on "Bright Gems" on the basis of clubbing of their clearances with those of "Expo Gems". Consequently, the penalty also gets vacated. Appeal No. 38/93 is allowed. 7. Though there is no demand of duty or penalty on "Expo Gems" under the impugned o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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