https://www.taxtmi.com/caselaws?id=217516 Clubbing of clearances cannot be sustained merely because allied units have common business dealings, overlap in management, loans, or sell their entire production to a principal unit. The department must prove with cogent evidence that the units are not independently functioning, are sham or dummy entities, and are under financial or managerial control with mutuality of interest or flow back. On the stated facts, the material did not establish such control or integrated operation, so the principle against clubbing applied. For the same reason, SSI exemption under Notification No. 175/86 could not be denied, as the alleged common arrangement alone was insufficient to displace independent unit status. en-us Tue, 20 Sep 2011 00:00:00 +0530 Wed, 17 Oct 2012 22:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=217516 Clubbing of clearances cannot be sustained merely because allied units have common business dealings, overlap in management, loans, or sell their entire production to a principal unit. The department must prove with cogent evidence that the units are not independently functioning, are sham or dummy entities, and are under financial or managerial control with mutuality of interest or flow back. On the stated facts, the material did not establish such control or integrated operation, so the principle against clubbing applied. For the same reason, SSI exemption under Notification No. 175/86 could not be denied, as the alleged common arrangement alone was insufficient to displace independent unit status. Case-Laws Central Excise Tue, 20 Sep 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=217516