Clubbing of business

647 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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
Featured 16 July 2026
CA Inter, CA Intermediate, CA IPCC, CA CPT, CA SemiQualified

Vakilsearch.com

Chennai

CA Inter

View Details
Company
16 July 2026
CA Inter, CA Intermediate, CA IPCC, CA CPT , CA SemiQualifie

Vakilsearch.com

Chennai

CA Inter

View Details
Company
11 July 2026
CA semi qualified

Vakilsearch.com

Chennai

CA Inter

View Details
Company
23 July 2026
CA Inter

Vikram Jadhav and Company

Pune

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
ARTICLESHIP 28 July 2026
Article/Intern/Semi-Qualified/Fresher B.Com

VNSS & Co

Mumbai

Others

View Details