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2017 (12) TMI 226 - CESTAT CHENNAISSI exemption - clubbing of clearances - dummy units - allegations raised is that M/s. Airflow was not registered with Central Excise Department and was wrongly availing SSI benefit under the notification by suppressing its value of clearances by clearing goods through another unit M/s. Bala - Held that: - Admittedly M/s. Bala has a separate sales tax registration and is a separate income tax assessee. Thus it is a separate unit before all public authorities for compliance of various laws - Shri G. Dakshina Moorthy the father of Sh. D. Ventakesh who is managing director of M/s. Airflow, is the proprietor of M/s. Bala. It is settled law that merely because the directors are related to the proprietor/partners of the other unit, such unit cannot be said to be a dummy unit - Undisputedly, M/s. Bala has a separate electricity connection. M/s. Bala has been paying sales tax and also tax on their income. Only because Sh. D. Venkatesan was helping to manage the affairs of the proprietorship concern run by his father, that will not by itself make the unit a dummy unit. The appellant has strongly contended that there was no flow back of money or sharing of profit. They have also submitted that the illustrations of fund transfer shown in show cause notice were only temporary funds paid by M/s. Airflow to M/s. Bala and the same was paid back. The department has mainly relied on these few illustrations and has not taken or considered the entire transactions. On perusal of record this argument is not without substance - matter requires reconsideration. The matter is remanded to the adjudicating authority for denovo adjudication - appeal allowed by way of remand.
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