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2015 (4) TMI 1023 - AT - Central ExciseDenial of SSI Exemption - Imposition of penalty - Clubbing of clearances - SCN was not issued to all the parties - Held that:- Units of M/s. Jai Hardware Pvt. Ltd., M/s.Door Devices Manufacturing Company, M/s. Deepak Hinges Pvt. Ltd., M/s.Monika Steels Pvt. Ltd. M/s.D.D. Hardware Pvt. Ltd. and M/s. D.P. Garg Exports Ltd. are the existing firms/companies having factories at different locations. Therefore, if the clearances of these units are sought to be clubbed with the clearances of the appellant unit, it was necessary to issue the show cause notices to these firms so as to enable them to put up their defene and without hearing the units, whose clearances are sought to be clubbed with the clearances of the appellant company, a unilateral decision cannot be taken that all the units are owned and controlled by one person only. For clubbing the different units for the purpose of SSI exemption, the only requirement is that the units should be owned by one person and for this purpose, it is absolutely necessary that if the clearances of a unit A are sought be clubbed with the clearances of the units, B, C and D and these units are owned by different persons, show cause notices must be issued to B, C and D, whose clearances are sought to be clubbed with the clearances of Unit A. We are supported in this view by the judgement of Calcutta High Court in the case of Diamond Scaffolding Company reported in [2011 (7) TMI 854 - CALCUTTA HIGH COURT] and the judgements of the Tribunal in the cases of Copier Force India Ltd. reported in [2008 (7) TMI 163 - CESTAT, CHENNAI], K. R. Balachandra reported in [2002 (8) TMI 197 - CEGAT, CHENNAI], Poly Resins reported in [2003 (8) TMI 132 - CESTAT, CHENNAI]; CCE, Bombay Vs. Supreme Electrical Appliances reported in [2001 (3) TMI 369 - CEGAT, NEW DELHI] and SKN Gas Appliances reported in [2000 (5) TMI 95 - CEGAT, COURT NO. II, NEW DELHI]. - Decided in favour of assessee.
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