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TMI Blog2016 (11) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... n record by the Department. It has been neither been alleged nor been established that any of the two firms was dummy /fagade or non-existent. On the contrary, it is a fact admitted by the department that both the units were found having independent manufacturing premises/factories during the search operations conducted by the Central Excise officers and were also found engaged in the manufacture of excisable goods as per panchnamas dated 17.11.2005 drawn on the spot. From the above facts stated, it is amply clear that both the firms were engaged in the manufacture of excisable goods namely plastic extrusion machines with the help of various machines installed in their respective premises and workers employed. I find that the most import ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the main respondent have paid central excise duty properly on the excisable goods manufactured and cleared by them during year 2002-03 to 2003-04. The main allegation in the proceedings was that the clearance from the factories of M/s Shiv Mechanical Works and M/s Manjeet Engineers should be treated together as clearance from and on behalf of M/s Shiv Mechanical Works. M/s Shiv Mechanical Works are to be considered as real manufacturer of excisable goods and as such, all the turnover by combining sales as shown by M/s Manjeet Engineers should be taken to assess exemption. Duty accordingly was demanded. The original authority confirmed the duty demand as mentioned above and imposed penalty of equivalent amount on the respondent and impose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le case of the Department depends on the statement of Shri Gian Singh who indicated that clearance from M/s Shiv Mechanical Works was to the tune of ₹ 1.2 crores and ₹ 1.28 crores (approx.) during the period in question. These amounts were added to the real turnover as shown in the records and duty has been demanded. No efforts whatsoever has been made by Revenue to make investigation to get the corroboration and to examine the records of raw materials, clearance , details of buyers etc. 4. There is no corroborative or additional evidence in the present case. The contention of the Revenue is that confessional statement of the main party which has not been retracted is sufficient to uphold the charge of clandestine clearance a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... less there is a clear and specific evidence that there is mutuality of business interest between the two units and that both have interest in the business of each other or they have common funding and financial flow back. In the present case also, I find that no such evidence indicating mutuality of interest in each other s business and financial flow back have been placed on record by the Department. It has been neither been alleged nor been established that any of the two firms was dummy /fagade or non-existent. On the contrary, it is a fact admitted by the department that both the units were found having independent manufacturing premises/factories during the search operations conducted by the Central Excise officers and were also found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nical Works and M/s Manjeet Engineers were one and the same unit and were jointly manufacturing extruders by way of undertaking some processes at one unit and rest at the other unit. I find that mere absence of some machinery meant for a particular operation does not lead to the inference that one unit is a dummy of other another unit form whom said operation has been got done on job work basis.The essential factor is the financial flow back and mutuality of interest for clubbing the clearances of the two units which is absent in the instant case as no evidence of flow back of sales proceeds and financial funding of any kind to each other unit have been placed on record. It is not the case of the department either that any of the firm have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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