banner_ad

Clubbing of business

628 views 1 replies

There are two units. one is public limited company which is having excise regn. another is proprietory concern which is non-excisable unit and availing ssi exemption. Proprietor of non-excisable unit is director in the public limited company with 50% share in shareholding.

Excisable unit has supplied goods to non-excisable goods without any consideration. This is even not accounted in the books of accounts of both the companies. But excisable unit has availed the cenvat credit.  On objection of excise department, the cenvat credit is reversed. But  now they are initiating the action for clubbing of two businesses ?

What are the penal provisions ? Can excise department will succeed in clubbing of business ? How to protect the client from clubbing of business ? Pl. suggest.

 

Replies (1)

The provision of clubing of units is not applicable only when the two units are really independant. If the department prove the clubing then the department is entitled to recover duty, interest and can also impose penalty upto the duty amount.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
09 May 2026
Audit Manager

Kanna and Associates

Coimbatore

CA Inter

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details