TMI Blog2006 (7) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... the proviso to Section 11A (1) of the Central Excise Act, in adjudication of show-cause notice dated 21.7.97 issued by the Department. That authority clubbed the clearances of goods by M/s. Ranveer Co. with the clearances of goods by the respondents, on the ground that the former unit had been created as a dummy for the latter, and the above demand was raised on the goods cleared in excess of the aggregate clearance limit prescribed under the relevant SSI notification. The authority also imposed penalties on the assessee under Section 11AC and Rule 173Q besides a penalty of Rs. 20,000/- on M/s. Ranveer Co. under Rule 209A. Aggrieved by the Deputy Commissioner's order, both the parties preferred appeals to the Commissioner (Appeals). Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied on the findings recorded by the original authority in paragraphs 20 to 23 of the Order-in-Original. Learned counsel for the respondents submits that in the absence of finding of common funding and financial flowback, all those findings of the original authority would not call for clubbing of clearances between the respondents and M/s. Ranveer Co. Reliance is placed on the Rajasthan High Court's judgment in the case of Renu Tandon Vs. Union of India - 1993 (66) ELT 375 (Raj.), wherein it had been held that clearances of goods manufactured by two units in the same premises having commonalities in respect of management, labour, electric connection etc. could not be clubbed in the absence of evidence of common funding and financial flowb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nits. In the present appeal, the appellant has made an attempt to distinguish the case of M/s. Ranveer Co. by submitting that both the units considered by the High Court were registered with the Department, whereas, in the present case, only one of the two units was registered with the Department. Since the substantive issue involves the question whether the benefit of SSI notification was available to the goods in question, we do not find relevance in whether any of the units was registered or not with the Department inasmuch as a SSI unit at the material time was not required to be registered with the Department The distinction sought to be drawn between the instant case and the case considered by the High Court is apparently irrational ..... X X X X Extracts X X X X X X X X Extracts X X X X
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