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2019 (4) TMI 173 - AT - Central ExciseSSI Exemption - clubbing of clearances - units that all are controlled by one family member - dummy units - Held that:- The allegation of the Revenue is that all three units are partnership firm and having common partners. That cannot be the sole ground to club the clearances of all the units. Moreover, M/s. Sonex Decor Pvt.Ltd., is a private limited company is a separate firm with its Directors, therefore, the same cannot be the ground to club the clearances of all the units - Moreover, M/s. Sonex Decor Pvt.Ltd., is a private limited company is a separate firm with its Directors, therefore, the same cannot be the ground to club the clearances of all the units. Other reason for clubbing of clearances of all the units are having financial flow back, mutual lending and borrowing etc. amongst the units; collection of sale proceeds on behalf of each other; joint control exercised by Shri Harvinder Singh and Shri Jaspal Singh on all the four units; common managerial control; partners/directors being members of the same family; and common use of facilities of telephone, fax, computer, office equipment, staff etc - We take note of the fact that all the units located at different locations having separate income-tax, sales tax, central excise registration. All units are having electricity connection, their own machinery and plant to manufacture their final products and maintaining their separate records such as manufacturing, purchasing, sale etc. The appellants are having bank accounts separately. There are some instances where some payments have been received by another person on behalf of the other but the same has been transferred to their respective account and during the course of their business if they have taken any money from the other company the same has been repaid. These facts have been recorded in the impugned order. Similar issue was examined by Hon’ble Supreme Court in the case of Rollatainers Limited vs. CCE, Delhi-III [2004 (7) TMI 92 - SUPREME COURT OF INDIA], where it was held that clearances of two factories within the same premises, same owner and common balance sheet with common boundaries but having separate staff, separate management, separate passage, separate entrance with separate central excise registration and producing different end products, cannot be clubbed together. Thus, the clearances of all the units cannot be clubbed together - appeal allowed - decided in favor of appellant.
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