2017 (7) TMI 156 - AT - Central Excise

SSI exemption - clubbing of clearances - dummy units - long delay in completion of adjudication - Held that - Whatever the reason may be from either side for the delay caused to complete the readjudication which arose out of the show cause notice issued on 17.2.1999, it is high time for the appellants not to resort to further dilatory tactics but to submit for hearing on 20th June 2017 before learned adjudicating authority. From the date of initiation of the proceedings in the show cause notice, 18 years have been expired. The demand sustained in adjudication would certainly cause injury to both sides. Therefore to reduce the litigation, endeavour should be made by the appellant without seeking adjournment on 20th June 2017 - appeal allowed by way of remand.

Summary

Issues:
1. Clubbing of clearances of three companies for assessment.
2. Failure of the appellants to appear before the adjudicating authority.
3. Request for adjournment by the appellants.
4. Delay in the readjudication process.
5. Directions for the adjudicating authority to proceed with the hearing.

Analysis:

Issue 1: Clubbing of clearances of three companies for assessment
The show cause notice sought to club the turnover of three companies based on various statements and evidence provided. It was noted that operations and transactions between the companies were interlinked, indicating a concerted effort to spread turnover to remain within the exemption limit. The Tribunal directed the adjudicating authority to re-examine the case, considering the complex interrelations between the companies and the discrepancies highlighted in the statements.

Issue 2: Failure of the appellants to appear before the adjudicating authority
The appellants failed to appear before the adjudicating authority on multiple occasions, despite being given opportunities and notices. The Tribunal emphasized the importance of cooperation in the legal process and highlighted the need for the appellants to participate actively to avoid further delays and complications in the proceedings.

Issue 3: Request for adjournment by the appellants
The appellants requested an adjournment citing conflicting commitments, but the adjudicating authority proceeded with the order without addressing the adjournment application. The Tribunal raised concerns about the handling of such requests and emphasized the need for proper documentation and verification to avoid unnecessary delays and ensure transparency in the process.

Issue 4: Delay in the readjudication process
The Tribunal acknowledged the prolonged duration of the legal proceedings since the initiation of the show cause notice, spanning over 18 years. It cautioned against further delays and urged the appellants to actively participate in the readjudication process to expedite the resolution and prevent harm to both parties involved.

Issue 5: Directions for the adjudicating authority to proceed with the hearing
The Tribunal directed the adjudicating authority to conduct a thorough hearing, consider all aspects raised in the show cause notice, and record the pleadings and evidence presented by the appellants. A strict timeline was set for the adjudicating authority to pass an appropriate order by a specified date, emphasizing the need for a fair and unbiased reevaluation of the case without being influenced by past findings.

In conclusion, the Tribunal remanded all the appeals, stressing the importance of active participation, timely compliance, and fair proceedings to ensure justice and efficiency in the legal process.