9911796707
TMI Blog2014 (1) TMI 1743X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 1998. That was registered with Central Excise Authority w.e.f. February, 2010. There after one concern namely Jain Pole Industries came into existence under the proprietorship of Manish Jain, who is son of Shri. Ashok Kumar Jain. This concern was operating from 17.04.2012 and was paying duty on the goods manufactured by it. The said unit was registered with the Excise Department in February, 2010. The third sequence of coming into existence was Jain Pole Products under the partnership of son and father from November, 2004. The fourth sequence of generation of Kumar Electron Pvt. Ltd. was in 2006, where both son and father were Directors. There being no further time available on the above date, ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no business operation. Therefore direction for any amount of pre-deposit shall cause undue hardship to both the appellants. Therefore, grant of opportunity of hearing to the appellant is necessity of law without dismissing stay applications at the threshold or directing for pre-deposit to cause undue hardship to the appellant. Ld. Counsel also submits that the demand is time barred. 5. On behalf of Revenue, it is submitted that the show cause notice clearly brought out allegation, which is summarily depicted in para 68 of the adjudication order and reads as under :- "68. It can be seen that the Show Cause proposed the clubbing of all the four units on the following grounds. (i) All the four units were controlled and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing kept in the single office which belonged to Shri Ashok Jain and were being commonly maintained by the common staff. The said office was common for all the units. No rent was paid by any of the units to Shri Ashok Kumar Jain, owner of the premises and the electricity and telephone expenditures were also borne by Shri Ashok Kumar Jain himself. In the office there was a common computer on which records of all the units being maintained. Apart from this, the telephone installed in this office was also commonly used for all the units. (v) There was common electricity connection between M/s Jain Poles and M/s Jain Poles Product. The water tanks of M/s Jain Poles and M/s Jain Poles Product were interconnected and wate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Manish Kumar Jain in their respective statements. For transfer of funds, no interest was charged by any unit. (ix) On scrutiny of the ledgers maintained by assessee in respect of their associated firms it was revealed that a huge amount was being transferred regularly by them amongst their all other firms without any interest as per requirement during the period from 2006-07 to 2010-11. (x) It also appeared that the distinct legal nature of the units was used as eye wash to portray its independent nature, whereas the units were interdependent and related through financial control and management. All the said units were not only related in terms of financial control but also through management personnel. In this case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when there is a close intimacy and interconnected deals between the persons and concerns clubbing of the clearance was desirable in the hands of the appellant. Ld. Adjudicating authority has rightly passed the order raising the demand against the appellants. 7. Heard both sides and also perused the record. 8. Primarily we noticed that there is a sequential formation of different concerns by the son and father and the reason of such formation was best known to them. One of the possibility may be to take undue advantage of Notification 8/2003-CE dated 01.03.2003 to get exemption of thresh hold limit as SSI which may not be ruled out. However we have no pre-conceived notion. This is a mere observation at this stage subject to tes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eposit if any proposed to be directed. 10. Considering entirety of the matter, we direct the appellant in SP No. 58162/2013 to deposit Rs. 50,00,000/- (Rupees fifty lakhs) in 10 equal monthly instalments of 5 Lakhs each to be payable by 25th of each month and first instalment shall commence from February, 2014. Soon after deposit, within a week thereof the respective challan shall be produced before ld. Adjudicating Authority to ensure compliance to this order. Failure to make payment of any of the instalment shall render this order vacated and Department shall be at liberty to realise its entire dues in accordance with law. In case of failure to make deposit of any of the instalments, ld. Adjudicating Authority sha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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