2008 (5) TMI 136

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cate, for the Respondent. [Order]. - Being aggrieved with the order passed by the Commissioner (Appeals), Revenue has filed the present appeal. 2. As per facts on record, office of M/s. Arbuda Industries and M/s. Arbuda Enterprises were put to search on 19-3-1999. The said companies were engaged in the manufacture of Guar Gum Powder falling under Chapter 13 and were separately availing the b....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lty of identical amount in terms of Section 11AC of the Central Excise Act. Penalty of Rs. 2 lakhs was imposed upon M/s. Arbuda Enterprises and Rs. 50,000/- on Shri Viratbhai G. Patel. 4. On appeal against the above order, Commissioner allowed the same by observing as under : "I find from the records there is nothing on records in the form of statement or evidence which establishes with reas....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s. In their written submission they have submitted that both the units are having other set of machineries for the purpose of manufacturing. That both the units have separate Income Tax PAN No., separate sales tax registration, separate professional tax registration, separate electricity meters etc. While examining this case on legal frame, I find that the law is well settled by the Apex Court whi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... tax registration and separate electricity meters. It is also seen from the panchanama itself that there were separate machinery installed in the factory premises of both the appellants and production activity was going on. It is well settled law that the clubbing of clearances, when the two units can establish their independent entity, is not called for, as rightly held by the Appellate authority....