2000 (8) TMI 1108

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.... : Vide the impugned order the Commissioner, Central Excise, Jamshedpur has confirmed the demand of duty of ₹ 16,27,340.74 against one M/s. Samarath Engineering Co. Pvt. Ltd. (hereinafter referred to as M/s. SECO) on his findings that M/s. SECO and M/s. Xenon are one and the same in the eye of law and the clearances of both the units have to be clubbed together for the purpose of small scal....

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....nd showed clearances of the same on behalf of the appellants. He submits that it is legally a settled position that if one unit is held to be dummy of the other, no penalty could be imposed upon the dummy unit inasmuch as it is very non-existence of the dummy unit, which has been upheld. As such he submits that the impugned order of the Commissioner is self-contradictory inasmuch as on the one han....

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....r attention has been drawn to the internal pages 11, 15, 21 and 22 of the impugned order. While discussing the evidence on the various aspects of the case, Commissioner has observed that the appellant was a dummy unit of M/s. SECO and as such, all the clearances made by them have to be clubbed together with the clearances of M/s. SECO. We find a lot of force in the appellant's argument that af....

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....ng this, we are following the cited judgment of the Supreme Court in the case of Gajanan Fabrics Distributors (supra)." 5. In the case of Gajanan Fabrics Distributors Vs. C.C.E. - 1997 (92) ELT 451, the Hon'ble Supreme Court observed that having held the appellant unit to be only a corporate facade with a view to camouflage their actual identity and thereby avail of the SSI Exemption, th....