2006 (7) TMI 35

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....o. with the clearances of goods by the respondents, on the ground that the former unit had been created as a dummy for the latter, and the above demand was raised on the goods cleared in excess of the aggregate clearance limit prescribed under the relevant SSI notification. The authority also imposed penalties on the assessee under Section 11AC and Rule 173Q besides a penalty of Rs. 20,000/- on M/s. Ranveer & Co. under Rule 209A. Aggrieved by the Deputy Commissioner's order, both the parties preferred appeals to the Commissioner (Appeals). The appeal filed by M/s. National Adhesive & Chemicals (respondents herein) was allowed by the Commissioner (Appeals), Trichy. Hence, the present appeal of the Department. It appears, the appeal of M/s. R....

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....nd financial flowback, all those findings of the original authority would not call for clubbing of clearances between the respondents and M/s. Ranveer & Co. Reliance is placed on the Rajasthan High Court's judgment in the case of Renu Tandon Vs. Union of India - 1993 (66) ELT 375 (Raj.), wherein it had been held that clearances of goods manufactured by two units in the same premises having commonalities in respect of management, labour, electric connection etc. could not be clubbed in the absence of evidence of common funding and financial flowback. It is submitted that, in the instant case, there was not even an allegation in the show-cause notice that there was common funding of the activities of the two units or that there was financial ....