TMI Blog2006 (7) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... tice dated 13.08.92 demanding duty of Rs. 7,35,994.63, by clubbing the clearance value of another unit in the name and style of M/s Mangalam Electronics situated in the same premises and owned by Shri Manoj Kumar Agarwal, younger brother of proprietor of M/s. Switching Electronics. On adjudication, Jt. Commissioner confirmed the demand and also imposed penalties. However, on appeal there against, the Commissioner (Appeals) held in favour of the respondents. Hence the present appeal. 3. After hearing both sides, we find that the challenge in the present appeal is on the issue of clubbing of two units. The revenue's ground is that both the units are situated in the same premises and are manufacturing identical products and are sharing com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts are mainly of location in a common address common store room, common storage of records, technical guidance by Shri AK. Agarwal, buyers approaching Shri AK. Agarwal on affairs related to ME, common personnel in some cases, machineries of complimentary nature, consideration free loan of Rs. 30,000/- given to ME by Shri A.K. Agarwal, common serial numbering machine, two proprietors are brothers etc., but not any point about common funding I or financial flow back From the case laws cited by the appellants before the adjudicating authority as well as before me, I find that it has been consistently held by different higher for a, from the Apex Court to the CEGAT, that in absence of common funding and financial flow back, two or more units ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner (Appeals), M/ s. Switching Electronics was started after two years of coming into existence of other unit M/s. Mangalam Electronics. In such a case, the revenue's allegation of bifurcation of unit cannot be upheld. The appellate authority has further held that financial flow back is essential for reaching at a conclusion of clubbing of clearances of two units, which evidence is absent in the present case. We note that revenue in their memo of appeal has not produced any evidence on record to rebut the above finding of the appellate authority. Hon'ble Supreme Court in the case of Modi Alkalies Chemicals Ltd., 2004 (64) RLT 4 SC) =2004 (171) ELT 155(SC) has held that pervasive financial and management control are indicators of i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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