TMI Blog2014 (12) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... me-Tax Registration and having separate Electricity Connection, telephone connection etc., it has to be held that they are independent units. In the present case, it is not even the Revenue’s case that all three units are working from the same premises or have any common facility. Infact we really find it strange that clearances of the unit which came into existence in 1981 are being clubbed with the clearance of two units which is admittedly came into existence in 1973 onwards. We really fail to understand and if we accept the Revenue's case, there would be no explanation as to what the unit which was working from 1973 onwards, was actually doing. M/s. Tirupati Alloy and Steel Pvt. Ltd. was independent private limited company engaged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eedings were initiated against the present appellants as also against other two manufacturing units i.e. M/s. Tirupati Alloy and Steel Pvt. Ltd. and Indore Link Chain by issuing the show cause notices dated 30.6.04 proposing clubbing of clearance of all three units and proposing confirmation of proportionate demands of duties against all three units. However, in the adjudication order, the Commissioner confirmed the demand only against M/s. Indore Steel Casting Pvt. Ltd. by clubbing the clearance of other two units with the clearance of the said appellant and by denying the benefit of small scale exemption notification. 3. M /s. Indore Steel Casting P. Ltd. are engaged in the manufacture of casting and was established with effect from 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anies. In stray cases, the money withdrawn from one company stand deposited in the other. By referring to the all the financial transactions, the adjudicating authority has drawn conclusion that overall picture which emerges from the said scenario is that Ms. Neha Beri Mhase was enjoying all the powers in respect of three units from the stage of sourcing of capital, deployment of employees, management of funds, planning of routine affairs staffing etc. and all the financial decisions of the companies as regards cash inflow and outflow. He has accordingly concluded that there was flow back of money from one unit to the other unit and common interest of business in each other is there in existence. Ms. Neha Beri Mhase is solely responsible fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no such allegation by the Revenue and as such, it is admitted and accepted by the Revenue that three units are three independent complete units manufacturing separately their own final products. 6. Revenue s reference to the transaction made by Ms. Neha Beri Mhase, wherein she has drawn money from the account of one unit and as also sometime deposited money in the accounts of the other private limited company cannot be held to be financial flow back of money. Such financial transactions are permissible business transactions and were in accordance with the law, duly reflected in the balance sheet of all the companies. Further, the fact that Mrs. Neha Beri Mhase was the Director in the two manufacturing units to the major extent and was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... help from the other unit, and are independently, registered with the sales tax, industries registration, Income-Tax Registration and having separate Electricity Connection, telephone connection etc., it has to be held that they are independent units. In the present case, it is not even the Revenue s case that all three units are working from the same premises or have any common facility. Infact we really find it strange that clearances of the unit which came into existence in 1981 are being clubbed with the clearance of two units which is admittedly came into existence in 1973 onwards. We really fail to understand and if we accept the Revenues case, there would be no explanation as to what the unit which was working from 1973 onwards, was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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