2000 (1) TMI 277

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.... Watch Co. P. Ltd. are two separate legal identities and their clearances cannot be clubbed. 2. Brief facts of the case are that M/s. Standard Times Pvt. Ltd. were engaged in the manufacture of wall clocks and table clocks and were availing the benefit of small scale exemption. During the course of visit of the factory premises of M/s. Standard Times Pvt. Ltd., it was found that in the same premises another unit namely M/s. Standard Watch Co. Pvt. Ltd. were also manufacturing wall clocks and table clocks. During investigation, it was found that the Director/partners of both the units are related persons. A show cause notice was issued to the respondents for clubbing their clearances on the ground that both the units are one. 3.&e....

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....imes Pvt. Ltd., the respondents, imported and purchased some of the components for the manufacture of wall clocks and table clocks. He submits that the customs duty and local purchases were paid of their own funds and through cheques. Similarly. M/s. Standard Watch Co. Pvt. Ltd. also imported certain components and customs duty was paid by them from their own account. He submits that in the manufacture of clocks, only screw drive technology is required. There is no requirement of plant and machinery as they were only assembling parts of the clocks and only testing machine is required. He submits that in the present case both the respondents have independent testing instruments, which were installed in their respective units. He, further, su....