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2009 (2) TMI 331 - AT - Central ExciseClubbing of clearances for denial of SSI exemption – Separate show cause notices necessary to all units when independent/separate existence of partnership firms not disputed by Revenue – evidence indicating that one of units giving work on jobwork basis to others and paying charges for same – At stage of show cause notice department nly makes allegations, leaving for adjudication authority to come to conclusions, and it cannot assume that there is no need for show cause as that would be gross denial of natural justice - We find that the lower authorities have not considered all the submissions made by the appellants. Legally also, the non-issue of Show Cause Notice to the other two firms, which have independent existence is very fatal to the case - There is blatant violation of the Principles of Natural Justice in not issuing Show Cause Notice to M/s. RTI as well as to M/s. HP. - Even at the investigation or Show Cause Notice stage, the Revenue cannot assume that there is no need for issue of Show Cause Notice to M/s. RTI especially, when the fact that M/s. RTI is an independent unit is not in dispute. Even if department says that the clearances made in the name of M/s. RTI are not the actual production of M/s. RTI, still, in order to observe the principles of Natural Justice, a Show Cause Notice ought to have been issued to M/s. RTI. - The appellants have strongly contended that they are entitled for exemption in respect of job work under Notification Nos. 83/1994 and 84/1994 both dated 11-4-1994. There is absolutely no discussion on this point. The records with reference to the job work given by M/s. RTI have not been examined at all. In view of all these things, we do not find any merit in the impugned orders. The same are set aside. As the demands are set aside, there is no justification for confiscation of the land, plant, machinery etc. Penalty is also not justified
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