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2018 (8) TMI 881 - AT - Central ExciseSSI Exemption - clubbing of clearances - dummy units - notice not issued to the other four units whose clearances sought to be clubbed - Held that - Admittedly the proceedings were not initiated against the other units whose clearances are sought to be clubbed with the clearances of the M/s D. P. Garg & Co. The issue involved in the case of M/s Garg Industries 2015 (4) TMI 1023 - CESTAT NEW DELHI is identical to the facts of the present case. There also the clearances of the other units were sought to be clubbed with the clearances of M/s Garg Industries and the Tribunal by taking note of the fact that the notice has not been issued to the other units set aside the confirmation of demands - In the present case also admittedly the notice does not stands issued to the other four units whose clearances sought to be clubbed in the clearances of M/s D. P. Garg & Co. Appeal allowed - decided in favor of appellant.
Issues:
Identification of identical issues in multiple appeals regarding clubbing of clearances for SSI Exemption Notification. Analysis: The judgment by the Appellate Tribunal CESTAT ALLAHABAD involved the identification of identical issues in multiple appeals where the clubbing of clearances for SSI Exemption Notification was in question. The case revolved around M/s D. P. Garg & Co., engaged in the manufacture of Door Hinges, and the contention by the Revenue to club the clearances of four other units with M/s D. P. Garg & Co. for denying the SSI Exemption Notification benefit. It was noted that Show Cause Notices were issued to M/s D. P. Garg & Co. without calling upon the other four units, which was a crucial procedural flaw. The Tribunal highlighted the necessity for issuing Show Cause Notices to all units involved if their clearances were to be clubbed. The judgment referred to previous cases and legal precedents to support this stance, emphasizing the importance of ownership in such clubbing scenarios. In a similar vein, the Tribunal referenced a previous case involving Garg Industries, where the clubbing of clearances from multiple units was challenged. The Tribunal had set aside the confirmation of demands in that case due to the absence of Show Cause Notices to the other units. Drawing parallels, the Tribunal in the present case reiterated the importance of following due process and issuing notices to all relevant units before clubbing their clearances. The judgment highlighted the Revenue's withdrawal of an earlier Order-in-Original before the Hon'ble Supreme Court in a related matter, indicating a recurring procedural lapse. By aligning with the precedent set in the Garg Industries case, the Tribunal set aside the impugned order and allowed all appeals, granting relief to the appellants based on the procedural irregularities observed. In conclusion, the judgment underscored the significance of procedural fairness and adherence to legal requirements in cases involving the clubbing of clearances for SSI Exemption Notification. By emphasizing the need for issuing Show Cause Notices to all units affected by such clubbing decisions, the Tribunal ensured that due process was followed and upheld the appellants' rights in the absence of proper notification to all relevant parties. The decision provided a clear framework for handling similar cases in the future, based on established legal principles and precedents governing such matters.
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