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TMI Blog2013 (4) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... it of Small Scale Exemption Notification No. 175/86-CE and subsequently Notification No.1/93-CE. Show cause notice was issued on the ground that M/s. Bullows Paint and Equipment Pvt. Ltd. is wholly a subsidiary company of M/s. Bullows India Pvt. Ltd., therefore the clearances of both the private limited companies are to be clubbed and a demand of Rs. 22,17,719/- is raised. The adjudicating authority confirmed the demand on the ground that M/s. Bullows India Pvt. Ltd. set up the subsidiary company M/s. Bullows Paint and Equipment Pvt. Ltd. contributing the entire share capital of Rs. 10 lakhs. The holding company exercised total managerial, financial, administrative and supervisory control over the subsidiary company. The adjudicating author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in 2003(152) ELT 28 (SC). 6. We find that the Revenue relied upon the decision of the Hon'ble Supreme Court in Gammon Far Chems Ltd. (Supra). The issue before he Hon'ble Supreme Court was the interpretation of the provisions of Notification 85/85-CE. The Hon'ble Gujarat High Court in the case of Catalco Chemicals (P) Ltd. (supra), after taking into consideration the decision of the Hon'ble Supreme Court in the case of Gammon Far Chems Ltd., and the provisions of the earlier of Notification No. 175/86-CE and Notification No.1/93-CE, held as under:- "7. Having thus heard learned counsel for the parties, we record that undisputedly case of the present assessee was covered by SSI exemption Notification No. 175/86 and No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te value of clearances of the specified goods for home consumption in a financial year - (a) by a manufacturer, from one or more factories, or (b) from a factory, by one or more manufacturers, (i) under sub-clause (a) of clause (1) and clause (2) of paragraph 1 taken together shall not exceed rupees thirty lakhs; (ii) under sub-clauses (b) and (c) of clause (1) shall not exceed rupees twenty lakhs and twenty-five lakhs respectively; and (iii) under claus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was no evidence on record to prove that there was mutuality of business interest or there was flow-back of funds from one unit to another and that therefore, clubbing of clearances could not be done under Notification No. 1/93. 11. Upshot of the above discussion would be that as held by Bangalore Bench of the Tribunal in the case of Nutrine Sweets Pvt. Ltd. (Supra) since our case concerns Notification No.175/86 and Notification No. 1/93 by mere fact that assessee was a subsidiary of another company, clubbing of clearances was not permissible. We hasten to add that such clubbing may still be open if the department had established that there was mutuality of interest or flowback of funds. However, in the present case even ..... X X X X Extracts X X X X X X X X Extracts X X X X
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