9911796707
TMI Blog2018 (10) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... sufficient to draw an inference that the two units should be clubbed together. In the present case clubbing of clearances was not justified - appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... as revealed that many of the cheques were received from M/s Shivani Industries and Sankalp Industries into bank account of appellant. It, therefore, appeared to Revenue that to remain in competition by remaining price competitive appellant has created the other two firms and, therefore, the clearances of all the three units should be clubbed together to examine the admissibility of appellant and other two manufacturers stated above to the exemption under Small Scale Exemption Notification No.8/2003-CE dated 01.03.2003. Revenue, therefore, obtained figures of purchase by M/s Prodelin India Pvt. Ltd. for the period from April, 2005 to March, 2010 and clubbed all the purchases by Prodelin India Pvt. Ltd. from appellant, Sankalp Industries and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -60, Noida on leave and licence basis. The proprietor of the appellant held an independent PAN number which was used for registration of appellant since appellant was a proprietorship concern and that the appellant was having a licence under Section 6 of Factories Act, 1948, they were independently registered with UP Trade Tax Authorities and that the aggregate value of clearances of appellant did not exceed SSI limit and the appellant sold entire goods to Prodelin India Pvt. Ltd. Further, appellant was having bank account with HDFC bank. Further appellant submitted before the Original Authority that the appellant were maintaining separate books of accounts which were audited from time to time by statutory auditor and thereafter audited bal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Metlowood Creations to M/s Sankalp Industries and M/s Shivani Industries and those loans were repaid by receiving firms and said transactions were purely business trasactions and said arrangements were temporary arrangements. They further submitted that extended period of limitation was not applicable in the case. Without appreciating the above stated submissions, the Original Authority confirmed the demand of Central Excise and Service Tax and imposed equal penalties and imposed penalty of ₹ 20 lakhs on Smt. Shivani Aswal the other appellant. Aggrieved by the said order both the appellants are before this Tribunal. 4. Heard the learned counsel for the appellants. He has submitted that the demand of service tax is not sustainable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. He has further relied on the Final Order of this Tribunal in the case of Vir Industries vs. Collector of Central Excise, Bombay-I reported at 1999 (109) ELT 322 (Tribunal). He has submitted that it was held in many decisions of various fora that common funding and financial flow-back are important for clubbing the clearances and mere circumstances of functioning in adjacent premises and partners being related to one another is not sufficient to warrant clubbing. He argued that since there was no financial flow-back and common funding, therefore, the clearances could not be clubbed and individually all the three units were having clearances within the limit provided under said notification and, therefore, Central Excise duty demand is not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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