https://www.taxtmi.com/caselaws?id=351953 Clearances of related units cannot be clubbed with a company's clearances for denying small scale industry exemption unless the department proves that the other units are merely dummies or have no real independent existence. Here, takeover of one unit meant it had no separate existence after acquisition, while the other unit showed separate excise, tax and sales tax registrations, bank account, electricity connection, workforce and machinery; common partners or directors alone were insufficient to establish dummy character. The absence of notice to the alleged dummy units also vitiated the proceedings. The result was that clubbing was not justified and the exemption denial, demand and penalties could not be sustained. en-us Mon, 27 Nov 2017 00:00:00 +0530 Fri, 16 Feb 2018 11:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=351953 Clearances of related units cannot be clubbed with a company's clearances for denying small scale industry exemption unless the department proves that the other units are merely dummies or have no real independent existence. Here, takeover of one unit meant it had no separate existence after acquisition, while the other unit showed separate excise, tax and sales tax registrations, bank account, electricity connection, workforce and machinery; common partners or directors alone were insufficient to establish dummy character. The absence of notice to the alleged dummy units also vitiated the proceedings. The result was that clubbing was not justified and the exemption denial, demand and penalties could not be sustained. Case-Laws Central Excise Mon, 27 Nov 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=351953