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of <h1>Tribunal Upholds Commissioner's Decision on Central Excise Registration with Stay Order</h1> The Tribunal upheld the decision of the Commissioner (Appeals) to reverse the cancellation order of the Central Excise Registration, confirming the ... Stay/Dispensation of pre-deposit - Demand - Manufacture Issues:1. Whether two units should be treated as one entity for the purpose of excise duty payment.2. Validity of the Commissioner's order based on common balance sheet and memorandum of two units.3. Granting of stay petitions to the appellant companies.Analysis:1. The case involves a dispute where M/s. Shakti Tubes Ltd. cleared Black Pipes to M/s. Shakti Steel Pipes for galvanization without duty payment. Initially, M/s. Shakti Steel Pipes availed Modvat credit but stopped after an order from the Assistant Commissioner. Subsequently, proceedings were initiated alleging both units are the same. The Commissioner (Appeals) reversed the cancellation order of the Central Excise Registration, which was upheld by the Tribunal in a previous appeal by the Revenue. The current show cause notice demands duty based on the unity of the units, contested by the appellant citing the finality of the Tribunal's previous ruling.2. The Revenue argued that new facts, like a common balance sheet and memorandum, justify treating both units as one entity. However, the Tribunal found that since its previous decision confirmed the units as separate, the Revenue should have challenged it before raising the same issue again. Consequently, the Tribunal granted an unconditional stay to M/s. Shakti Tubes Ltd. The stay petition of M/s. Shakti Steel Pipes, seeking relief from the duty payment order, was also granted due to the established legal precedent that galvanization does not constitute manufacturing.3. Given the recurring nature of the issue, both appeals were scheduled for final disposal on a specific date. The Tribunal's decision was based on the principle of res judicata, emphasizing the importance of finality in legal judgments and the need for challenging previous decisions through the appropriate legal channels. The stay orders were granted to ensure fairness and adherence to established legal principles in excise duty matters.
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