TMI Blog2018 (10) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... from the partners, the appropriation of the refund sanctioned to the proprietary unit is legal and proper. Held that:- A proprietary unit is an individual legal entity and any refunds due to the proprietary unit cannot be adjusted or appropriated towards the demand which may be pending recovery against an another independent legal entity, of which the proprietor of unit is a partner. It has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r confirmation of demand, on the ground of clandestine removal, were initiated against one M/s Diwan Industries, a partnership firm. Inasmuch as the proprietor of the present appellant M/s Mahavir Industries, Shri Prabhat Jain was one of the partners in M/s Diwan Industries, notice also proposed confirmation of demand against M/s Mahavir Industries i.e. the present appellant. The demand to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon ble High Court of Delhi, by way of filing a writ petition which was rejected, and as a consequence, the appellant deposited the directed amount in question. On such deposit, their appeal was taken up for final disposal and vide Final Order No. 50135/2017 dated 6.1.2017, their appeal was allowed. 4. As a consequence of their allowing of their appeal, they became entitled to the refund o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prietor of the present unit is a partner in M/s Diwan Industries and the arrears against the partnership firm can be recovered from the partners, the appropriation of the refund sanctioned to the proprietary unit is legal and proper. However, I find that there is no dispute about the fact that proceedings were initiated against M/s Mahavir Industries by treating the same as an individual manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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