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TMI Blog2008 (7) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Shri A. K. Srivastava, Member (T) Shri A.V. Naik, Advocate, for the Appellant. Shri Ajay Saxena, SDR, for the Respondent. [Order per: A.K. Srivastava, Member (T)]. - The Tribunal, vide Order No. 3057-58/97/WRB, dated 23-7-1997, while disposing of the appeals filed by the appellants against the Order-in-Original No. 08/C.E.X./1996 dated 24-1-1996 passed by the Commissioner of Central Excise Customs, Pune, held that the clubbing of clearances of the two appellants is sustainable in the facts and circumstances of the case. However, the Order of the Commissioner confiscating land, building and machinery is set aside. On appeal by the appellants to the Bombay High Court, the Hon'ble High Court, vide Order dated 28-4-2005, set a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 comprising of the same partners as Directors along with two other relatives. Both were having their manufacturing premises in the same Block. As per the agreement, M/s. Harnik Nutrients Pvt. Ltd. were to share 2% of their sale turnover with M/s. Harnik Food Industries, which points towards the financial flow-back. As per investigations, all production activities were carried on in the building of M/s. Harnik Food Industries and in the other building, the raw material and packing material of M/s. Harnik Food Industries were stored. Both the units were having common office in respect of all the work of documentation. Both the units were using the same brand 'Harnik' belonging to M/s. Harnik Food Industries. One family of Hingorani was fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9-5-1992 will apply to a normal situation when Private Limited Company and Partnership Company are genuine and not in a case where Private Limited Company has been found to be dummy created on paper solely for the purpose availing the benefit of S.S.I. notification illegally by fragmenting the units. The Hon'ble Supreme Court in the case of M/s. Supreme Washers Pvt. Ltd. cited supra had held that the inter-relationship and interdependence of three units is established and the value of clearance of three units is to be clubbed for the purpose of Notification No. 175/86-C.E., as there is mutuality of interest, there being common management of three companies under one person, common procurement of raw material, common stock accounting and pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he duty demand was confirmed upon all seven units whereas demand ought to have been confirmed only against M/s. Gajanan Weaving Mills. We find that in the case before us the Commissioner has confirmed the duty demand against both the units i.e. M/s. Harnik food Industries and M/s. Harnik Nutrients Pvt. Ltd. thereby implicitly recognizing (heir independent existence by treating both of them as assessees, which is not correct. When M/s. Harnik Nutrients Pvt. Ltd. have been held to be dummy unit, the duty could have been demanded only from M/s. Harnik Food Industries, being the de facto and de jure manufacturer and not from M/s. Harnik Nutrients Pvt. Ltd. We modify the Commissioner's order to this extent. 9. The ratio of the Supreme Court' ..... X X X X Extracts X X X X X X X X Extracts X X X X
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