TMI Blog2014 (12) TMI 1087X X X X Extracts X X X X X X X X Extracts X X X X ..... is not permitted to proceed on the same grounds in the remand proceedings. Clubbing cannot be established without any evidence of flow of funds. In the case of VIR Industries Vs. CCE, Bombay - [1997 (4) TMI 269 - CEGAT, NEW DELHI], it has been held that the three units having some common partners operating from the same premises and having common facilities, entire production of two units sold to third unit, no finding of special financial relationship involving common funding and financial flow back or manipulation of accounts and therefore clearance cannot be clubbed and assessable value to be the sale price of each unit. In the case of Techno Device Vs. CCE, Chennai - [2009 (6) TMI 219 - CESTAT, CHENNAI], it has been held that mainten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not eligible to avail SSI exemption benefit under Notification No. 175/86-CE dated 1.3.1986 individually. Show Cause Notices were issued demanding duty for the period from September 1990 to December 1992 and proposing to club the clearances of all the four units and to deny the benefit of SSI exemption. The adjudicating authority dropped the proceedings initiated in the show-cause notices. Revenue filed appeals before the Commissioner (Appeals). By the impugned order, the Commissioner (Appeals) also dismissed the appeals filed by the Revenue. 3. After hearing both sides and on perusal of the records, we find that it is a second round of litigation. In the earlier round, the Tribunal vide Final Order No. 2763 to 2780/1999 dated 29.10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d down and pass a speaking order. 4. From the aforesaid Final Order, it is seen that the Tribunal had already allowed the appeals by holding that the units are independent and the benefit of exemption Notification is required to be extended. However, the Tribunal allowed the Commissioner to examine the removal of the goods without payment of duty clandestinely. We find that both the authorities below dropped the proceedings. In the grounds of appeal, it was contended by the Revenue that there is a flow of funds from M/s. Saraswathy Fire Works to M/s. Mercury Fire Works Industries as established by the ledger of M/s. Saraswathy Fire Works for 1988 to 89. It is stated that the Income Tax Return of M/s. Universal Fire Works would show that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were independent entities, there was no evidence for mutuality of interest and free financial flowback between these units. However, the department has come in appeal on the note that Smt. Madana having 99% of profit in all 4 units and there was common raw material procurement etc. and there was also flowback of money from one unit to another. In this regard, I observe from the case law in respect of DBI Engineers Pvt. Ltd. Vs. CCE, Bangalore 2003 (157) ELT691 (Tri. - Ban.) that the Hon ble CEGAT, South Zonal Bench, Bangalore has held that units having separate income tax, sale tax, SSI and Central Excise Registration, wherein no financial flowback from one to other, their clearances would not be clubbed merely because partner in one firm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to common raw material procurement, free transfer of funds inter - se between the units common Head Office facilities, common marketing strategy, exchange of raw materials from one unit to other unit, have become redundant and not maintainable. And in view of the same ruling of Hon ble CEGAT, Bangalore and Chennai, the issue of mutuality of interest and flow back of money from one unit to another, as relied upon by the Department in the case of M/s. Simplex Expeller Works Vs. Commissioner - 2001 (138) ELT 678, becomes redundant and not maintainable. In view of the said discussions and the legal facts of the case the dropping of further proceedings initiated under seven show cause notices demanding a sum of ₹ 6,08,570/- as duty b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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