TMI Blog2013 (4) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... ancial flow back of the funds and in such cases the clearances of the holding and subsidiary private limited companies can be clubbed. In the present case we find that even in the show cause notice there was no such allegations. In the show cause notice the only allegation is that the holding company has share capital in the subsidiary company. There is no evidence regarding financial flow back on record. In these circumstances the impugned order is set aside and the appeals are allowed. - Decided in favor of assessee. - E/1216 & 1217/04, E/CO/417 & 418/04 - A/420-423/12/EB/C-II - Dated:- 13-6-2012 - S.S. Kang And Sahab Singh, JJ. Appellant Rep by: Shri Krishna Kumar, Adv. Respondent Rep by: Shri S.R. Bhatti, Deputy Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance sheets of both the companies to submit that in the balance sheets which are statutory under the Companies Act, there is no evidence on record to show that there is any financial flow, therefore the clearances of both the private limited companies cannot be clubbed in absence of financial flow back or mutuality of interest. The appellants relied upon the decision of the Hon'ble Gujarat High Court in the case of CCE, Surat-II vs. Catalco Chemicals (P) Ltd. reported in 2012(277) ELT 56 (Guj.). 5. The contention of the Revenue is that M/s. Bullows Paint and Equipment Pvt. Ltd. is wholly a subsidiary of M/s. Bullows India Pvt. Ltd. and the entire share capital of Rs. 10 lakhs is provided by M/s. Bullows India Pvt. Ltd., hence there is a m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... behalf of a manufacturer, from one or more factories, or (b) from any factory, by or on behalf of one or more manufacturers. Had exceeded rupees seventy-five lakhs in the preceding financial year." In comparison to above provisions made in Notification No. 85/85, Notification No. 175/86 provided the following negative conditions: "(3) Nothing contained in this notification shall apply if the aggregate value of clearances of all excisable goods for home consumption. (a) by a manufacturer, from one or more factories, or (b) from any factory, by one or more manufacturers. had exceeded rupees one hundred and fifty lakhs in the preceding financial year." Similarly, Notification No. 1/93 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove noted clause (2) of Notification No.85/85 and upheld the Revenue's stand with respect of clubbing of clearances by subsidiary with that of principal. 10. We may notice that even in absence of any clause as contained in Notification No.85/85, if there was neutrality of interest between the two units, clubbing of clearances may still be open for the Revenue. In case of Electro Mechanical Engg. Corpn. (supra), the Apex Court in background of Notification No.1/93 upheld the decision of the tribunal which had come to factual finding that there was no evidence on record to prove that there was mutuality of business interest or there was flow-back of funds from one unit to another and that therefore, clubbing of clearances could not be d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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