https://www.taxtmi.com/caselaws?id=108632 Separately incorporated units with distinct registrations and manufacturing activity were not to be clubbed merely because they had common directors, shared some facilities, or had related business arrangements. Clubbing of clearances required evidence that the units were mere facades, with financial flow back, profit sharing, or effective total control by one entity; absent such proof, small-scale exemption could not be denied on a dummy-unit theory. On limitation and penalties, the failure of the suppression-based clubbing case meant the extended demand could not stand on that footing, though penalties were retained for procedural irregularities in movement of goods, with the main unit's penalty reduced as excessive. en-us Thu, 28 Apr 1994 00:00:00 +0530 Tue, 03 Apr 2012 11:27:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=108632 Separately incorporated units with distinct registrations and manufacturing activity were not to be clubbed merely because they had common directors, shared some facilities, or had related business arrangements. Clubbing of clearances required evidence that the units were mere facades, with financial flow back, profit sharing, or effective total control by one entity; absent such proof, small-scale exemption could not be denied on a dummy-unit theory. On limitation and penalties, the failure of the suppression-based clubbing case meant the extended demand could not stand on that footing, though penalties were retained for procedural irregularities in movement of goods, with the main unit's penalty reduced as excessive. Case-Laws Central Excise Thu, 28 Apr 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=108632