9911796707
TMI Blog2017 (11) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... nit's existence as dummy - Admittedly, all the three units are duly registered with District Authorities, Income Tax and Sales Tax Authorities. To establish a unit dummy or only existing in paper, sufficient corroborate evidences are to be produced which will mainly relate to financial control, functional independence and manufacture of items which are same and various other facts - In the present case, the evidences available are not leading to such conclusion. Demand set aside - appeal allowed - decided in favor of appellant. - E/43/2003-DB, E/44/2003--DB, E/1096/2003-DB - Final Order No. 21610-21612/2017 - Dated:- 11-8-2017 - Shri S.S Garg, Judicial Member and Shri B. Ravichandran, Technical Member Shri Raghavendra, Advocat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ₹ 50,000/- (Rupees Fifty Thousand only) was imposed on the Managing Director. 4. The learned counsel appearing for the appellant submitted mainly on the following line: a) While the first proceedings were against only the main appellant and the Managing Director, no notices were issued to the other two units who were held to be dummy units and whose turnover was sought to be included with that of main appellant. Such proceedings without issuing notices to the alleged dummy units to defend their case are not legally sustainable. b) In the second proceedings the demand was issued through various show-cause notices to all the three units almost on the same ground as per the earlier proceedings. However, consequent of adjud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e notice to the units which were alleged to be dummies. We find that such course of action without notice to the involved party is not legally sustainable. In this connection we refer to the decision of the Tribunal in Poly Resins Vs. CCE Chennai - 2003 (161) E.L.T. 1136 (Tri-Chennai) . Even otherwise we note that the main thrust of the finding of the lower authority is on the existence of all the three units in the same premises. There is no discussion or finding regarding overreaching financial control, flow back of benefits among the three units. The location of units in the same premises by itself shall not make any of the unit as a dummy unit. Corroborate evidences are required to establish such unit's existence as dummy. Admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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