TMI Blog1996 (11) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Collector of Central Excise, Pune. By the impugned order the Collector of Central Excise directed that the clearance values of both the appellants concerns shall be clubbed together for allowing the small scale exemption, if applicable. He also confirmed the demand of Rs. 1,81,989.74 issued on the concerns under Rule 9(2) of the Central Excise Rules, 1944 and imposed penalty of Rs. 25,000/-. 3. A firm under the name Ashok Enterprises was brought into existence prior to 1981 with Mishrimal S. Waghresa (M.S. Waghresa), Hirachand M. Solanki (H.M. Solanki), Ashok M. Solanki (A.M. Solanki) and Dilip M. Solanki (D.M. Solanki) as partners for manufacture and sale of all types of filters under the brand name PUROFIL filters. They are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... achine and roller machine belonging to and set up in the premises of M/s. Ashok Enterprises were allowed to be used by M/s. PUROFIL on payment of monthly rent of Rs. 300/-. The agreement was for 99 years and it recites Rs. 20,000/- as deposited by M/s. PUROFIL. It provided that electricity and water meters may be used by PUROFIL at present but in due course M/s. PUROFIL shall make separate arrangements. The department gathered more materials about the functioning of these two concerns and came to a tentative conclusion that M/s. PUROFIL was a dummy concern of M/s. Ashok Enterprises conceived to hide the fact of clearances crossing Rs. 30 lakhs and therefore, the clearances must be clubbed together. In 1984-85 the clearances clubbed together ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 licences. (6) The two concerns have separate customers. 5. The department, on the other hand, has marshalled the following circumstances : - (1) The partnership concern M/s. Ashok Enterprises as well as the new Enterprise by the name PUROFIL have the same adventure, namely, manufacture and sale of filters falling under erstwhile Tariff Item 68. (2) Notification 77/83 granted exemption on clearance up to Rs. 30 lakhs per year. This Notification was in force till 16-3-1985. During 1983-84 (before setting up of M/s. PUROFIL) the clearances of M/s. Ashok Enterprises was around Rs. 24 lakhs of which a major part consisted of clearances to M/s. KOEL. (3) In the first two months of 1984-85, namely, April and May the clearances o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs were being used in common by both the concerns. Electricity and water charges were being paid exclusively by M/s. Ashok Enterprises. (9) The father was attending to the purchases and sales relating to both the concerns. One of the sons Harakchand M. Solanki was giving technical guidance to both the concerns and provided technical know how and control for both the concerns. The five lady partners of M/s. PUROFIL were sleeping partners. One of the sons B.B. Solanki had signed bills and invoices standing in the name of M/s. PUROFIL even though legally he had nothing to do with that concern. He did not produce any letter of authority as promised. (10) The products of both concerns had the name PUROFIL . (11) During the personal hearin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lming circumstantial evidence showing that the two concerns were part of one show belonging to the father and the sons. The memoranda of appeals refer to a large number of decisions of the Tribunal in respect of other cases. We do not wish to refer each of them separately since we find that the decision in each case rested essentially on the facts and circumstances of the case. They cannot be said to lay down in general principle of law which would be favourable to the respondent. 7. In the light what we have indicated above, we are in agreement with the view taken by the Collector of Central Excise that the clearances of the two concerns are required to be clubbed for the purposes of the exemption notification. The demand is only consequ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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