TMI Blog2017 (7) TMI 789X X X X Extracts X X X X X X X X Extracts X X X X ..... the workers in all the four units being the same; the conclusion reached by the adjudicating authority, in our view is right and proper - the department has been able to sufficiently establish that there existed flow back of funds and mutuality of interest among four units - appeal dismissed - decided against appellant. - E/319/2008 - Final Order No. 41231 / 2017 - Dated:- 17-7-2017 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Ms. Minchu Mariam Punnose, Advocate for the Appellant Shri K.P. Muralidharan, AC (AR) for the Respondent ORDER Per Bench The appellant is aggrieved by the demand raised by clubbing the clearances of three other units namely Sri Venkateswara Indu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i P. Janarthanam and Shri Sathish. The seized grills were ordered to be released on payment of appropriate duty. Aggrieved by this order, the appellant had filed appeal before the Tribunal and vide Final Order Nos. 796 to 799/2003 dated 26.9.2003, the matter was remanded to the adjudicating authority who after denovo adjudication confirmed the very same demand and penalty on the appellant. Penalty of ₹ 10,000/- was imposed on each of the partners. 3. Appeal was filed by the appellant as well as the other three units as Appeal Nos. E/316 to 319/2008. The Appeal Nos. E/316 to 318/2008 were disposed by the Tribunal vide Final Order Nos. 493 to 496/2009 dated 28.4.2009 at the time of hearing of stay application, on the ground that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same employees were working in all the different units, it cannot be said that the other three units are dummy units for the purpose of clubbing the clearances. 4.3 That on the other hand, the appellants had produced ledger accounts to show that there was no flow back of cash. The department has proceeded merely because the units were started in the name of the blood relatives of Shri R.D. Pandian who is the proprietor of the appellant herein. The units were using ordinary hand tools that are required for manufacture of line materials and no other sophisticated machinery is required for the purpose of manufacture of the subject goods. All the four units were manufacturers of electricity line materials and therefore the machinery necess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant and the purchase of raw material and sale of finished goods was personally managed by Sri R.D. Pandian of the appellant unit. It was also seen that the oxygen cylinders purchased in the name of the appellant was utilized by all other units. The payment of freight charges of one unit was made by other unit and the raw materials procured by one unit was diverted and accounted in other units. All the bank transactions were attended to by Shri R.D. Pandian of the appellant unit and during the absence of Shri P. Janahar, proprietor of Sri Manipandian Industries, after October 1986 (as he left India for his studies), the unit was managed by his father Shri R.D. Pandian. All the units are in the name of the members of the family. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant. It is seen that Shri R.P. Pandian was dealing with the bank transaction of other units as is evidenced by the deposits, withdrawals etc. Similarly, the orders for purchase of raw materials for all units were made by Shri R.D. Pandian. These facts point out to the strong inference that the appellant unit is the main unit and the other units are only dummy units created for the purpose of evading central excise duty by suppressing the value of clearances. 8. The fact that all the three units are situated at one place which is separated by passages; that all the four units belong to the same family members; that account of one unit is seen reflected in the account of another unit; that the raw materials are used in common or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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