https://www.taxtmi.com/caselaws?id=185487 Clubbing of clearances to deny small scale exemption requires clear proof of a principal-dummy arrangement and a legally sustainable computation of duty liability. Common directors, supervisory overlap, inter-unit supply, or occasional financial accommodation, by themselves, are insufficient to establish mutuality of interest or a sham set-up. Here, the notices and lower orders failed to show the basis of duty computation, how the exemption threshold was crossed, or which unit was the principal unit and which was the dummy. In the absence of such foundational material, the demand based on clubbing of clearances could not be sustained and was set aside in favour of the assessee. en-us Wed, 18 Nov 2015 00:00:00 +0530 Thu, 16 Feb 2017 11:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=185487 Clubbing of clearances to deny small scale exemption requires clear proof of a principal-dummy arrangement and a legally sustainable computation of duty liability. Common directors, supervisory overlap, inter-unit supply, or occasional financial accommodation, by themselves, are insufficient to establish mutuality of interest or a sham set-up. Here, the notices and lower orders failed to show the basis of duty computation, how the exemption threshold was crossed, or which unit was the principal unit and which was the dummy. In the absence of such foundational material, the demand based on clubbing of clearances could not be sustained and was set aside in favour of the assessee. Case-Laws Central Excise Wed, 18 Nov 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=185487