TaxTMI 
TaxTMI 
1998 (2) TMI 531
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....Collector of Central Excise, Bombay on 6th September, 1990. 3. He stated that both the appellants are manufacturer of printed cartons, labels, packages etc. The appellants M/s. Pharma Art Pack, C-21, Shalimar Industrial Estate, Matunga, Bombay-400 019 are a proprietary concern having SSI registration whereas M/s. T.R. Corporation situated at D-6, Shalimar Industrial Estate, Matunga, Bombay - 400 019 are a proprietary firm legally different and distinct from the former. However, the Department has clubbed both of them and denied them the benefit of exemption Notification Nos. 80/80, 83/83 and 85/85 on the ground that the combined production and clearances exceeded the prescribed limits. 4. It was their contention that they we....
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....k was being carried out by M/s. T.R. Corporation in accordance with the agreement dated 8-3-84 and no charges were paid and no rent collected as the punching machine was installed in the premises of M/s. T.R. Corporation and the electricity charges were fully met and maintenance of machine was also their responsibility i.e. M/s. T.R. Corporation were not charging for the job work and they were not charging for this much. It was also their contention that as per Tribunal's decision in the case of Jagjivandas & Co. reported in 1985 (19) E.L.T. 441 (T), one firm's machinery being used by another firm would not attract clubbing provisions, hence, they could not be clubbed. 7. It was also their submission that there were no financial tra....
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....edabad v. Ambica Scale Mfg.Works reported in 1996 (86) E.L.T. 229 (Tribunal). 11. Learned DR reiterated the Department's view as contained in the order-in-original and emphasised that the Collector has, in his finding portion of the order, given detailed reasons which go to show that for all practical purposes, the units had been functioning as one unit as highlighted in paragraphs 10 & 12 of the show cause notice. He would like to emphasise that the firms were interdependent and each using the facilities of the other for manufacturing the end product and the two firms had interest in the business of each other and for all practical purposes, they worked as one unit and therefore, the value of their clearances was required to be clu....
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....ences thereof would automatically follow and in this respect, it is important to take note of the organisation, method of functioning and control, in particular. The aspect of financial relationship or commercial relationship is undoubtedly important and therefore, the factor of financial flowback, and it is open to the assessees/defendents to show that the relationship was at arm's length on principal-to-principal basis but, once the Department is able to show that many of the activities or utilisation of machinery or staff or facilities were in common, the onus shifts on to the other side to show that in spite of it all, they were still functioning, in fact, as in law as distinct units. In the present case, the Department has been able to....