SOUTHERN PLYWOODS Vs. COMMISSIONER OF CENTRAL EXCISE, COCHIN

JUDGEMENT

(1.) IN this matter, the learned Counsel had proceeded to argue the matter on 21 -12 -2006. He put the submissions, that the Revenue had proceeded to demand the duty against M/s. Southern Plywood of the basis of allegation that the clearances of two other units, namely M/s. Hindustan Plywoods and M/s. Razia Timber Industries are required to be clubbed with the clearance of the appellants 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 appellants 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 and 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 non -sustainability of the demand in such a situation while clubbing of clearances without making other two units as parties by issue of show cause notice. In view of the submission, this Bench on 21 -9 -2006 had directed the learned Departmental Representative to call for comments from the Commissioner and that the Commissioner should explain as to why the cost should not be imposed on him personally on his lapse for not issuing the show cause notice to other two units whose clearances were to be clubbed with the clearances of the appellant in terms of the laid down judgments. The matter was adjourned to 26 -12 -2006 on which date the learned Jt. CDR, Shri R.K. Singla appeared and prayed for further extension of time on this point. The matter was adjourned to 2 -2 -2007 on which date, the matter was again adjourned to 9 -3 -2007. The reply was filed on 17 -4 -2007 by the Additional Director General, DGCEI, Bangalore. After that, the Commissioner who has issued the show cause notice was asked to file his reply by 3 -5 -2007. The matter had been adjourned for calling his personal explanation from time to time. Ultimately, one Shri G. Narayanaswamy, then Joint Director, DGCEI, Bangalore, now on deputation to the Cabinet Secretariat, A -417, VBG Gardens, Novodaya Colony, Mehdipatnam, Hyderabad - 500 028, has filed his objections on 2 -3 -2007. The matter had been adjourned from time to time on the request of the either side.

(2.) THE learned Counsel raises primary objection and submits that the 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 appellants 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 : -