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2015 (8) TMI 635 - HC - Central ExciseDenial of SSI Exemption - Clandestine Removal and Deliberate Fragmentation of manufacturing activities - clubbing of clearance - tribunal decided in favor of assessee on technical ground - Held that:- Whether the failure to challenge the finding in favour of Shri M.S. Jain in a connected matter would operate on the principle of res judicata on the Tribunal from examining the other cases on merits - Held that:- Records of the various group companies have been perused and on the basis of that, the Department has issued the show cause notice against the group companies and proprietory concerns. The adjudicating authority, according to the Department, had failed to consider that it is a case of wrong availment of the benefits of the notification and all the units were clubbed together and the benefit granted under the exemption notification should be denied. It is of no consequence that merely because M.S. Jain, one of the person who suffered the penalty order, did not file any appeal It is the specific case of the department that the clearances of all these units and the proprietory concerns should be clubbed together for the purpose of denying the benefit of notification. However, the Department can always sustain its allegations, de hors the statement of M.S.Jain, if there are other materials to support its case. Merely because the case of M.S. Jain has not been appealed against, it does not, and would not, dilute the case of the Department. - Tribunal was clearly in error in holding that merely because no appeal has been filed against M.S. Jain, all the other appeals cannot be maintained - Decided in favour of Revenue.
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