TMI Blog2000 (1) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... and their clearances cannot be clubbed. 2. Brief facts of the case are that M/s. Standard Times Pvt. Ltd. were engaged in the manufacture of wall clocks and table clocks and were availing the benefit of small scale exemption. During the course of visit of the factory premises of M/s. Standard Times Pvt. Ltd., it was found that in the same premises another unit namely M/s. Standard Watch Co. Pvt. Ltd. were also manufacturing wall clocks and table clocks. During investigation, it was found that the Director/partners of both the units are related persons. A show cause notice was issued to the respondents for clubbing their clearances on the ground that both the units are one. 3. After adjudication, the impugned order was passed. 4. Ld. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for the manufacture of wall clocks and table clocks. He submits that the customs duty and local purchases were paid of their own funds and through cheques. Similarly. M/s. Standard Watch Co. Pvt. Ltd. also imported certain components and customs duty was paid by them from their own account. He submits that in the manufacture of clocks, only screw drive technology is required. There is no requirement of plant and machinery as they were only assembling parts of the clocks and only testing machine is required. He submits that in the present case both the respondents have independent testing instruments, which were installed in their respective units. He, further, submits that in the impugned order there is specific finding that there is no f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dence of financial flow back from one unit to another. Therefore both the units are independent and their clearances cannot be clubbed. To contradict this finding of fact, the revenue has not produced any evidence in support of their case. Further, we find that the Hon ble Rajasthan High Court in the case of Renu Tandon v. Union of India (supra) held that in absence of evidence of common funding and financial flow back, the clearance of two units cannot be clubbed and units cannot be treated as one even in the case where the units are situated in the same premises having common, office, management and labour and common electric connection. In the present case, there is no evidence produced by the revenue to show the common funding or financ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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