adjustment of demand with other unit

[Arun Aggarwal]

Sir

we have two units registered with central excise in which one of the partner is common and are in the same range of excise.

Excise officials wants to adjust/ hold the refund of one unit because of the demand in the other unit being having a common partner.

Both the units are manufacturing different products.

Pls advice the legal course of this situation.

Arun

AI Summary

Excise officials wrongly attempt to adjust refunds between two business units with common partners; appeal advised. Two business units, sharing a common partner and registered under central excise, face an issue where excise officials intend to adjust the refund of one unit due to a demand on the other. Despite manufacturing different products, the officials treat them as a single entity. Legal advice suggests this action is unsustainable, as precedent and a 1992 circular indicate that mere commonality of partners does not justify treating them as a single unit for excise purposes. The recommended legal course is to file an appeal if the refund is denied. Another contributor agrees, emphasizing the need for quasi-judicial proceedings to declare both units as the same before adjusting refunds.