2002 (10) TMI 97

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..... n 25-7-2000 under the Central Excise Act, 1944 (hereinafter referred to as 'the Act') to M/s. Komalagowre Textiles and M/s. Selvaganapathy Textiles to show cause as to why duty should not be demanded jointly from them. The stand of the Department is that the respondent had floated dummy units for the purpose of removal of cotton yarn on cone manufactured by M/s. Komalagowre Textiles without paymen .....

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..... that both the units are separate and independent; that one unit was not in existence when the other unit was functioning; that the goods seized related to the other unit; that, therefore, 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 .....

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..... of either side, held that it cannot be said that the show cause notice is without jurisdiction or illegal and that the appellant has no authority at all to issue the show cause notice and, therefore, was not inclined to entertain the writ petition. It was also held that even if it is true that a portion of the duty alleged to have been suppressed and demanded is referable to both M/s. Kamalagowre .....

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..... t in Music Time Electro Cottage's 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 arr .....

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..... to M/s. Komalagowre Textiles and M/s. Selvaganapathy Textiles. 7.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, .....

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