9911796707
TMI Blog2008 (5) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... - Being aggrieved with the order passed by the Commissioner (Appeals), Revenue has filed the present appeal. 2. As per facts on record, office of M/s. Arbuda Industries and M/s. Arbuda Enterprises were put to search on 19-3-1999. The said companies were engaged in the manufacture of Guar Gum Powder falling under Chapter 13 and were separately availing the benefit of small scale exemption, in ter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 11AC of the Central Excise Act. Penalty of Rs. 2 lakhs was imposed upon M/s. Arbuda Enterprises and Rs. 50,000/- on Shri Viratbhai G. Patel. 4. On appeal against the above order, Commissioner allowed the same by observing as under : "I find from the records there is nothing on records in the form of statement or evidence which establishes with reasonable certainty that manufacturing activity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that both the units are having other set of machineries for the purpose of manufacturing. That both the units have separate Income Tax PAN No., separate sales tax registration, separate professional tax registration, separate electricity meters etc. While examining this case on legal frame, I find that the law is well settled by the Apex Court which is that in cases where there are allegatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is also seen from the panchanama itself that there were separate machinery installed in the factory premises of both the appellants and production activity was going on. It is well settled law that the clubbing of clearances, when the two units can establish their independent entity, is not called for, as rightly held by the Appellate authority. There is nothing on record to show that both th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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