Natural justice bars demand where alleged dummy units were not all put on notice before adjudication.

Demand based on allegations that four interlinked units were dummy units could not be sustained where the show cause notice was issued only to one unit and not to the others. Because the remaining units were also named in the allegations but were given no opportunity to answer them, the adjudication breached the principles of natural justice. The order was therefore unsustainable for want of notice to all concerned units.

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Issues: Whether the demand could be sustained when show cause notice was issued only to one unit while the other alleged dummy units were not put to notice, resulting in denial of natural justice.

Analysis: The dispute concerned four units alleged to be interlinked for availing the benefit of Notification No. 175/86. The notice was issued only to one unit and not to the other units against whom the allegations were also directed. In such circumstances, the affected units were denied an opportunity to meet the allegations, and the adjudication suffered from breach of the principles of natural justice.

Conclusion: The issue was decided in favour of the appellant, and the order could not be sustained for want of notice to all concerned units.

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