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TMI Blog2018 (9) TMI 489X X X X Extracts X X X X X X X X Extracts X X X X ..... Neha International, M/s Sandeep Trading Company and M/s K. S. Graphics alongwith two other units M/s Vrinda Fine Arts and M/s Shiva Graphics, were so connected with M/s Shivalik Printers, that the turnover of all the six units as it appear to Revenue, can be clubbed to determine the excise duty liability in terms of Notification No. 8/2003-CE dated 01.03.2003. In the earlier Order-in-original dated 09.01.2009, it was held that out of the aforementioned six units, M/s Shiva Graphics and M/s Vrinda Fine Arts were held to be not connected with M/s Shivalik Printers. The other four units were held to be dummy units. Accordingly, clearances were clubbed and excise duty liability confirmed. This Tribunal in the aforesaid Final Order observed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough the investigation made by the department and also statements of various persons recorded during the course of investigation. I find that during the course of investigation, it was observed that all these so called dummy units have been dealing their affairs mostly in cash. I find that no evidence has been adduced by the department to effect that there is any financial flow back from these units to the principal manufacturer and vice versa. I also find that during the investigation neither any common person was found who was involved in common financial transaction nor any common source of funding was found. Thus, the test of common financial control of these dummy units is not satisfied in the instant case. 4.5.8 Now, other test is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce. Since, these units have not been issued show cause notice, their incomes cannot be clubbed particularly considering the fact that the above CESTAT judgment has been accepted by the department. 4.7.1 Now, I take up the third issue as to whether at this stage, show cause notices can be issued to the alleged dummy units. 4.7.2 Audi alteram partem (or audiatur et altera pars) is the principle of natural justice requiring that no person should be judged without a fair hearing in which each party is given the opportunity to respond to the evidence against them. For inviting the penal consequences issuing a notice is a must. 4.7.3 In this regard, the Hon'ble CESTAT has found that these units are having legal existence with reference to o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one unit is principal unit while others are dummy units which had been floated with a view to camouflage clearances of principal unit. Where duty is demanded from all the involved units, it would lead to an inference that revenue has recognized implicitly all the units as independent units. 4. Ld. Advocate for the respondent -assessee have supported the finding in the impugned order. He further relies upon the ruling of this Tribunal in the case of CCE, Chandigarh vs. Shiva Exim Enterprises -2005 (185) ELT 169 wherein the fact that the adjudicating authority had clubbed the clearances of Shiva Exim Enterprises with that of another firm M/s Shivam Petro Products on the ground that their partners were inter se relations as in the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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