TMI Blog1989 (11) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... to his relation under the name and style of M/s. S.N. Synthesis (hereinafter referred to as M/s. SNS) was also manufacturing Acid Slurry. The issue before the lower authority was regarding the classification of the Acid Slurry and Scouring Powder. The learned representative of the appellant, however, pleaded that so far as the classification of Acid Slurry and Scouring Powder is concerned, they accept the same and the issue that survives is regarding the demand of duty as a result of clubbing the production of Acid Slurry by the two units. Scouring Powder has been accepted as exempted from payment of duty by lower authority. The lower authority took note of the fact that the appellant and the proprietrix of M/s. SNS unit are son and mother ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Processes where the Sabena was produced without the aid of power under a single contractor. The duty from the appellant was demanded for the period 1983-84 as the clearances of Acid Slurry during the said period exceeded the limit of Rs. 7.5 lakhs. 2. The learned representative of the appellant, Shri T.G. Raghunath, who is the father of the appellant, pleaded that the learned Collector in his order has recognised that M/s. SNS is a different proprietory concern from the appellant and after so recognising the two units, he has proceeded to club the clearances of the two units. He pleaded that there was no warrant for clubbing the production and clearances of Acid Slurry as that of one unit. 3. The learned Senior D.R. for the Departm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nies are supplied by common electric mains in the same premises at 9 10, G.K. Industrial Estate and the production of the Slurry by both the units was used in the manufacture of cleaning powder in the brand name of Sabena , which belonged to Shri T.G. Raghunath. While in the show cause notice it has been stated that M/s. SNS unit is a dummy concern created to evade Central Excise duty, the learned Collector has not held so but has ordered the clubbing of the clearances of Acid Slurry by the two units for the reason that the same was being manufactured by a common contractor. It is, however, seen from the record that the contractor only engaged the work force in both the units and would appear to be only the supplier of the labour or in o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs. v. Collector of Central Excise, Bombay, reported in 1987 (13) ECR 787 (Cegat SB-C), has held based on the evidence in that case that all the operations were being carried out by one set of partners of one concern while the others were not at all concerned with any one of such operations and in that case the Tribunal has held that the clearances of all the units will have to be clubbed as if that of one unit. No evidence of that nature has been placed before us in the present case. In a similar case this Bench, while giving the benefit of doubt in the case of Annapoorna Mills v. C.C.E., Coimbatore, in Excise Appeal No. E/157/88/MAS decided on 23-10-1989, has held as under : In the present case, while an element of suspicion has been c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and circumstances of the case, merely because a common labour contractor was supplying labour force to the two units or facility of common electricity meter or space has been provided, it cannot be considered as adequate reason to hold that the production in one unit could be considered as if that of the other unit. The operations in the two units, as held in the case referred to supra, may be colourable one and that cannot be taken to take the place of proof in the absence of any tangible evidence that the two units were actually being managed by the appellant and, therefore, the Acid Slurry being manufactured by the other unit should be taken as if by or on behalf of the appellant; more so, when the Collector has recognised the two uni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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