TMI Blog2008 (8) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... Timber Industries are required to be clubbed with the clearance of the appellant s unit. It is the submission of the appellant that the Revenue ought to have issued the show cause notice to other two units whose clearances are proposed to be clubbed with the clearance of the appellant s unit. As such a step has not been taken, the proceedings are not sustainable in terms of the several citations. He relied on the judgment rendered in the case of Shree Krishan Minerals Others [2005 (190) E.L.T. 251 (Tribunal) = 2005 (71) RLT 435 (Bang.)] and Shilpa Chem. [2005 (187) E.L.T. 360] which has been upheld by the Apex Court reported in 2006 (199) E.L.T. A129. He also relied on a large number of judgments in the written submissions pertaining to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order has to be set aside on the ground that the Revenue has failed to issue show cause notice to other two units whose clearances were proposed tb be clubbed with the clearance of the appellant s unit. 3. The learned SDR points out the objections raised by Shri G. Narayanaswamy, then Joint Director, DGCEI, Bangalore. He has filed several grounds and ultimately he stated in Para 10 as follows :- 10. In case the explanation offered above is not satisfactory, full opportunity may please be given to me to defend the department s point of view by providing all the records, sufficient time and specifying the issue to be clarified. However, it is hoped that the issues have been sufficiently clarified and the Hon ble Tribunal would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Register No. 22 belonging to M/s. Southern Plywoods only have been taken into consideration (Para 22 of the OIO) (v) The quantity recorded as received from M/s. Hindustan Plywoods in the Register No. 22 of M/s. Southern Plywoods has not at all been taken for demanding duty from the latter (Para 13.2 of SCN is reiterated by Para 23 of the OIO) (vi) No allegation to say that they are related companies/firms was made and no attempts were made to club the value of the two/three units for SSI exemption purpose. Infact, the SSI exemption has been allowed to these units explicitly in the SCN itself (Para 14 of SCN and Para 23 of the OIO). (vii) The Register No. 22 seized from M/s. Southern Plywood shows that the excisable goods cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ath were involved in manipulations for evading excise duty, show-cause notices have been issued to them for penalty. The Indian Partnership Act, 1932, Chapter III (clause 24) makes it clear that the notice to partner (s) operates as notice to the firm. As both the partners of M/s. Raziya Timber Industries, Shri M.K. Hamza and Shri M.K. Shoukath were issued notice for penalty, it amounts that the firm M/s. Raziya Timber Industries is put on notice for penalty, for allowing its bills to be used by M/s. Southern Plywoods. 7. From the foregoing it is clear that there is no proposal made in the SCN to club the value of clearance of M/s. Raziya Timber Industries with that of M/s. Southern Plywoods. Hence there was no cause for issue of any noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Raziya Timber Industries would have resulted in a frivolous litigation. Therefore, it is requested that the Department Representatives may be impressed upon to convey the factual position and stand of the department effectively to the honourable Tribunal, Bangalore Bench. 4. The learned Counsel again reiterates the judgment cited supra by him which had been confirmed by the Apex Court. He submits that the other two units are in existence and are not dummy units. 5. We have carefully considered the submissions made by both the sides. We notice that prima facie the Revenue ought to have issued the show cause notice to other two units. There is a clear failure on the part of the Commissioner in not applying the basic principle of law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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