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TMI Blog2002 (10) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... rities concerned, the same may be examined and, if necessary, separate proceedings may be held in regard to M/s. Komalagowre Textiles and M/s. Selvaganapathy Textiles. When the stand of the Department is that one firm is a fictitious business firm or a dummy of the other, it was not proper for the High Court to have interfered at the stage of issue of show cause notice. Liability to pay duty would depend upon the finding of facts which can be arrived at after adjudication is complete. Therefore, the show cause notice for the period 1-4-99 to 31-3-2000 could not have been quashed by the Division Bench. Appeal allowed. Set aside the order made by the Division Bench and restore that of the learned Single Judge. X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, the issue of a joint show cause notice or initiation of joint proceedings was not permissible under law relying upon the decision of the Allahabad High Court in Music Time Electro Cottage v. Union of India, 1988 (38) E.L.T. 19 (Allahabad) wherein it had been held that joint show cause notice or joint proceedings was not permissible and therefore, directed the Department to bifurcate the notice in respect of two cases. It was also contended before the High Court that in the notice there was no allegation that even after surrender and cancellation of RC, the respondent continued to manufacture and clear the goods and thus joint liability for any such irregularity committed by the other assessee, which is a separate unit, could not be sus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case (supra). For the later period, it was noticed that the respondent had surrendered the previous license and a license afresh had been granted to M/s. Selvaganapathy Textiles and, therefore, no allegation regarding that period is answerable by the said firm. It was further observed that in fastening of the liability it depends upon the finding of fact to be arrived at after affording opportunity and holding enquiry. 6.Inasmuch as a show cause notice has been issued to both M/s. Komalagowre Textiles and M/s. Selvaganapathy Textiles, we fail to understand as to how any prejudice is caused to either of the parties. At the stage of issuance of show cause notice, particularly when the view of the Department is that one firm is a fictitious b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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