1997 (4) TMI 521

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....d authority in arriving at the said finding is in the following terms :- "5.4 As regards the present case, it is found that Shri Amal Chakraborty is the Managing Director of M/s. A.C. Pharmaceuticals Private Ltd. and the other Director being his wife. Shri Amal Chakraborty is also one of the 3 (three) Directors of M/s. Asclepius Pharmaceuticals Private Ltd. and the other 2 (two) Directors being Smt. Krishna Chakraborty, his wife and Smt. Ratna Sen. In the statement given by Shri Amal Chakraborty on 2-9-86 to the Central Excise Officers, Shri Chakraborty had stated clearly that by a resolution passed by M/s. Asclepius Pharmaceuticals Pvt. Ltd. Shri Amal Chakraborty was looking after the finance, sales, etc. and the other two directors ....

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.... of Central Excise duty up to the first clearance of ₹ 7.5 lakhs separately for both the said Companies in terms of Notification No. 85/85-CE, dated 17-3-85." 2. In short, the reasoning of the lower authority is that Shri Amal Chakraborty is controlling both the units, viz. Asclepius Pharmaceutical and A.C. Pharmaceuticals. The other two Directors in Asclepius and the other Director in A.C. Pharmaceuticals are merely sleeping Directors not taking any active part in the day-to-day management of the two units. 3. As against the aforesaid finding of the adjudicating authority, learned Consultant Shri K. K. Bhattacharjee submits that mere management control of two units does not call for designating one of the units as a dummy....

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....euticals inasmuch as the medicines manufactured by Asclepius were being sold through the sales representative of the A.C. Pharmaceuticals. He also drew attention to Para 6.3 of the impugned order wherein a discount of ₹ 28,172.76 during 1985-86 was given by A.C. Pharmaceuticals to M/s. Asclepius Pharmaceuticals. It is also pointed out in para 5.4 that A.C. Pharmaceuticals was getting certain amount from Asclepius Pharmaceutical for propagating the product. In view of these circumstances, learned JDR submits that the finding of the lower authority is correct and, therefore, the appeal should be dismissed. 6. We have carefully considered the pleas advanced from both sides. We observe that in respect of legal matters for various pu....