1999 (10) TMI 224 - AT - Central Excise

Summary

Issues:
- Duty payment calculation for multiple units
- Clubbing of units for duty payment
- Applicability of Supreme Court judgment on clubbing clearances

Analysis:
1. The judgment dealt with five appeals arising from the same impugned order regarding duty payment calculation for multiple units. The Commissioner held that two units should not be clubbed with others for duty calculation, but confirmed duty against all units, leading to a demand for Central Excise duty and differential duty amounts against various entities.

2. The order included a detailed duty liability document and division among the units. Both parties agreed that the Commissioner's action conflicted with the Supreme Court's decision in Gajanan Fabrics Distributors v. C.C.E., where a similar situation led to setting aside the Tribunal's order for a fresh decision by the Commissioner.

3. Referring to a Tribunal order in a similar situation, it was noted that if only one unit was the real manufacturer, confirming duty against all units implied recognition of their independent existence. The Tribunal concluded that the units should be considered a single entity for duty payment, similar to the Supreme Court case, leading to setting aside the Commissioner's order for a fresh decision with parties' cooperation.

4. Consequently, the Tribunal allowed the appeals, set aside the Commissioner's orders, and remanded the matters for a fresh decision by the Commissioner. The Commissioner was instructed to provide adequate opportunity for parties to present their case, and the appellants were directed to cooperate in the process for a fair resolution in line with legal principles and precedents.