2014 (12) TMI 79

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Rs. 78,72,452/- against M/s. Indore Steel and Casting Pvt. Ltd. along with confirmation of interest and imposition of penalty of identical amount. In addition, penalty of Rs. 7.50 lakhs stand imposed on Mrs. Neha Bari Mahase. 2. After hearing both sides, it is seen that proceedings were initiated against the present appellants as also against other two manufacturing units i.e. M/s. Tirupati Alloy and Steel Pvt. Ltd. and Indore Link Chain by issuing the show cause notices dated 30.6.04 proposing clubbing of clearance of all three units and proposing confirmation of proportionate demands of duties against all three units. However, in the adjudication order, the Commissioner confirmed the demand only against M/s. Indore Steel Casting Pvt. L....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....fter observing that adjudicating authority has made reference to financial transactions wherein Ms. Neha Beri Mhase has withdrawn money from the accounts of the said Companies and in some subsequent financial transaction has also deposited money in the accounts of the said companies. In stray cases, the money withdrawn from one company stand deposited in the other. By referring to the all the financial transactions, the adjudicating authority has drawn conclusion that overall picture which emerges from the said scenario is that Ms. Neha Beri Mhase was enjoying all the powers in respect of three units from the stage of sourcing of capital, deployment of employees, management of funds, planning of routine affairs staffing etc. and all the fin....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nies cannot be clubbed together unless it is established, by lifting the corporate veil that two units are not working as independent unit and there is intertwining financial accommodation and the said two units are legally fagade unit on paper only. In the present case, there is no such allegation by the Revenue and as such, it is admitted and accepted by the Revenue that three units are three independent complete units manufacturing separately their own final products. 6. Revenue's reference to the transaction made by Ms. Neha Beri Mhase, wherein she has drawn money from the account of one unit and as also sometime deposited money in the accounts of the other private limited company cannot be held to be financial flow back of money. Su....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....-Del)] has categorically observed that the prime requirement of clubbing of clearance of two units is not having complete independent machinery and infrastructure to manufacture the goods. If both the units are complete by itself, capable of manufacturing the goods without any help from the other unit, and are independently, registered with the sales tax, industries registration, Income-Tax Registration and having separate Electricity Connection, telephone connection etc., it has to be held that they are independent units. In the present case, it is not even the Revenue's case that all three units are working from the same premises or have any common facility. Infact we really find it strange that clearances of the unit which came into exis....