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TMI Blog2017 (5) TMI 1013X X X X Extracts X X X X X X X X Extracts X X X X ..... ng a dummy unit by name "Kavya Electronics & Communications" (hereinafter referred to as KEC) and routing the same clearances thereat, remaining within SSI exemption limit of Rs. 1 crore. It was also alleged that they were manufacturing and clearing the goods with brand name of M/s.Digicontrols Northern Pvt. Ltd. (hereinafter referred to as DIGI). Hence no exemption was available under SSI for those goods. Original authority confirmed duty demand of Rs. 15,68,141/- and Rs. 25,78,477/- under Section 11A of the Central Excise Act, 1944 with interest thereon, imposed equal penalty under Section 11AC ibid and also imposed penalties against authorized signatory of appellant and proprietress of the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these reasons, he held the adjudication order not sustainable for the allegation that LEC had cleared goods under the brand name of DIGI. 6. With regard to the second allegation of floating a dummy unit, here also, the lower appellate authority has analyzed the issue and found that the said allegation is not sustainable. The relevant portion of the impugned order is reproduced below : "7. As regards the allegation of floating a dummy unit i.e. M/s.KEC, while the Appellants have furnished documentary evidence such as, registration with Income Tax, Sales Tax, Industries/Labour Department, Central Excise declaration etc. in support of their contention that M/s.KEC is a separate legal entity owned by Smt. D. Sud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... constituent units. The investigation has miserably failed to establish any financial flow back among the constituent units in the instant case, in these circumstances, the allegation that M/s.KEC is a dummy unit floated by M/s.LEC is not sustainable. I hold that M/s.LEC and K/s/KEC are independent entities eligible for their respective SSI exemption limits. Once it is established that there is no case against the unit itself, it is needless to mention that the penalties against P.Madhusudhan Rao, Authorised Signatory of M/s.LEC & Smt. D. Sudharani, Proprietress of M/s.KEC is not warranted." 7. We find ourselves in agreement with these findings of the lower appellate authority. Hence we do not find any infirmit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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