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TMI Blog2016 (10) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... nd therefore there is nothing wrong in clubbing the clearances of both the units for the purpose of computation of aggregate value of clearances for SSI exemption. The decision in the case of Parle Bisleri (P) Ltd. Versus CCCE [2010 (12) TMI 26 - Supreme Court of India] relied upon where it was held that where the companies are indeed interdependent and possibly even related through financial control and management, the value of clearances has to be clubbed together in the interests of justice. Invocation of extended period of limitation - Held that: - extended period has been rightly invoked by the Department as the Director has concealed the true facts from the Department with intent to evade payment of duty and the said Director whose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e dated 03.01.2002 was issued by the Director General of Central Excise Intelligence for treating both the units as belonging to one manufacturer. Consequent to this clubbing of clearances, duty of Rs. 2,80,507/- (Rupees Two Lakhs Eighty Thousand Five Hundred and Seven only) was proposed to be demanded. Thereafter the Additional Commissioner passed the Order-in-Original dated 11.10.2002 and confirmed the demand and ordered clubbing of clearances and duty demand of ₹ 2,54,375/- (Rupees Two Lakhs Fifty Four Thousand Three Hundred and Seventy Five only) was confirmed and penalty of equal sum was imposed under Section 11AC along with demand of interest under Section 11AB. In addition penalty of ₹ 20,000/- (Rupees Twenty Thousand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Settlement Commission to hold that the appellant had approached the Settlement Commission and hence they have accepted the liability and therefore they have to pay the duty. 4. On the other hand the learned AR defended the impugned order by submitting that there was sufficient evidence to establish both the entities are controlled by two persons who are its Directors. He further submitted that the partnership firm and the private company have only two Directors who were in-charge of the affairs of the organization and secondly there was a financial flow from one entity to another in the form of funds transfer from one to another and both the entities were manufacturing the same product. In such circumstances mutuality of interest can b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... persons. Both the units are in the same premises. Both the units manufacture the same product namely UPS. There is evidence to show that the Indian Overseas Bank, with whom they had account had transferred the amount from one unit to another and vice versa. The adjustments were also made between the personal accounts of the partners and the firm. There was no record with reference to a separate establishment of M/s. Genesis Instrument Company. Some casual labourers were employed and production and marketing was done under supervision of S/Shri V.S. Manohar and V.U. Thambi. The Revenue has clearly established that both the units belong to the same persons. Therefore, the case laws cited by the appellants are not relevant and to say tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purpose of computation of aggregate value of clearances for SSI exemption. The learned AR in support of his submission relied upon the following decisions: a) Parle Bisleri Pvt. Ltd. 2010-TIOL-115-SC-CX b) CCE, New Delhi Vs. M/s. Modi Alkalies Chemicals Ltd. and others 2004-TIOL-70-SC-CX c) Box Carton India Pvt. Ltd. Vs. CCE, Delhi-IV 2008 (228) E.L.T. 85 (Tri.-Del.) d) Box Carton India Pvt. Ltd. Vs. Commr. 2010 (255) E.L.T. A13 (S.C.) 5.2. In the case of Parle Bisleri Pvt. Ltd. cited supra the Hon ble Supreme Court has held that where the companies are indeed interdependent and possibly even related through financial control and management, the value of clearances has to be clubbed together in the inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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