1999 (10) TMI 693 - AT - Central Excise

Summary

Issues involved: Violation of principles of natural justice due to failure to issue show cause notice (SCN) to all related units.

Summary:
The case involved a dispute where the show cause notice (SCN) was issued to the main appellant company but not to its related dummy units. The appellant argued that the dummy units were not served the SCN, leading to a failure of natural justice. The respondent contended that since the dummy units were created solely for availing a specific benefit, there was no need to issue separate notices to them.

Upon hearing both sides, the tribunal acknowledged the existence of four units but noted that the SCN was directed only at one unit, omitting the others. The tribunal concluded that this selective issuance of the notice amounted to a violation of natural justice principles. Consequently, the appeal was allowed based on this procedural flaw.