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TMI Blog2002 (3) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Meta Pack manufacture metal containers and consists of following partners :- (i) M/s. Meta Craft (a) Shri A.J. Shetty (b) Shri Vijay Shetty (ii) M/s. Meta Pack (a) Mrs J.J. Shetty (b) Shri Vinay Shetty 2.2. The Central Excise Officers visited the factory premises of Meta Craft on 22-7-89 and found papers/documents pertaining to M/s. Meta Pack; the officers also noticed shortage in stock of metal containers in Meta Pack which were cleared to their godown without payment of duty and found unaccounted stock in the premises of Meta Craft. Investigation conducted by the Officers revealed that all the partners were related to each other and A.J. Shetty held power-of-attorney of all the partners; that both the units rendered financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as held that the Corporate Veil can be ripped open in the case the benefit goes to same persons. The Collector also gave his findings that the affidavits filed by them controverting their earlier statement were after thought and reference was made to the decision in Sukar Narain v. C.C., 1987 (27) E.L.T. 74 (T). 3. Shri L.P. Asthana, learned Advocate, submitted that both Meta Craft and Meta Pack have separate SSI Registration, Income-tax Number, Sales Tax Registration, Excise Licence, Import/Export Licence, Power connection, telephone connection, separate premises, staff and separate registration with registrar of firms; that unfinished side seam welded tins were sent by Meta Craft to Meta Pack for printing, lacquering rubber solutioning, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... financial transactions without charging of interest, etc., are not conclusive circumstances to show that the clearances of the Appellants were for and on behalf of the others; that the appeal against this decision was dismissed on account of delay in filing the appeal by the Supreme Court as reported in 1989 (41) E.L.T. A133; 4. The learned Counsel also contended that the demand is time barred as the classification list was approved from time to time and the benefit of Notification No. 175/86 was also granted; that the R.T.12 returns of both the units were approved by the Department and as such no fact was suppressed or they did not withhold any information from the department; that demand has been wrongly calculated inasmuch as the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only for the process of cutting and welding whereas full metal containers were manufactured by Meta Craft; that as the fact of manufacture of entire metal container was not disclosed to the Department, there was suppression and accordingly extended period of limitation is invocable in this matter and as such demands are not time barred. On the issue relating to clubbing of clearances of both the units, the learned DR relied upon the decision in the case of Ashok Enterprises v. CCE., Pune, 1997 (92) E.L.T. 77 (T) wherein it was held that two units, both partnership, one consisting of father and his sons and the other of father and his daughter-in-law, manufacturing same product, control over activities of both units exercised by father, tech ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one i.e. to say when there is no fund in one company then funds from other company is transferred----or payment to parties on behalf of one company is made by other company----. These financial adjustments were done with advice from Shri A.J. Shetty. "Shree Hule also deposed that Shri A.J. Shetty is deciding regarding the quotations and also on which companies name against which order/quotation is to be placed to customers." He also stated in his statement that all the process of cutting/rolling and seaming were done in Meta Craft only. It is also observed from the statements dated 22-7-89 of Shri Suresh L. Salian that on receipt of printed sheets of Meta Pack at M/s. Meta Craft, he prepares 57F(2) Challan which book is kept in the office o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of circumstances create a pattern indicative of the clearance from the plurability of units being made by a 'manufacture' clubbing is warranted. In the present matter the combination of circumstances do indicate so and accordingly we agree with the findings of the Collector that the clearances of both the units are required to be clubbed for the purpose of exemption notification. The larger period of limitation as provided in proviso to Section 11A of the Central Excise Act is invocable as the facts were not disclosed to the Department. The learned Advocate, has mentioned that there was a mistake in working out the duty already paid to the extent of Rs. 2.31 lakhs. This aspect has to be checked by the adjudicating authority and correct am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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