Clubbing of units for excise duty must be applied consistently; inconsistent demands require set-aside and fresh adjudication.

Where multiple manufacturing units are clubbed as one entity for excise liability, the duty demand must be framed consistently with that finding. An adjudicating authority cannot sustain a demand against individual constituent units in a manner inconsistent with clubbing for duty computation. The Tribunal followed the Supreme Court approach in the analogous clubbing context and held that the demand required fresh examination by the adjudicating authority. The impugned orders were therefore set aside and the matters remanded for fresh adjudication after giving the parties adequate opportunity.

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Issues: Whether the Commissioner's order, after holding that the clearances of several units were liable to be clubbed, could nevertheless confirm duty against the constituent units, and whether the matter required remand for fresh adjudication.

Analysis: The order under challenge proceeded on the footing that the units' clearances were to be clubbed for duty computation, yet the demand was confirmed against more than one unit in a manner inconsistent with that finding. The Tribunal noted that this situation was covered by the Supreme Court's ruling in the analogous matter of clubbing and confirmation of demand, where the proper course was to treat the units as a single entity for liability purposes and to have the matter examined afresh by the adjudicating authority. As the Commissioner's manner of framing the demand did not accord with that approach, the order could not be sustained.

Conclusion: The appeals were allowed, the Commissioner's orders were set aside, and the matters were remanded to the jurisdictional Commissioner for fresh decision after giving adequate opportunity to the parties.

Ratio Decidendi: Where an adjudicating authority finds that multiple units are to be clubbed as one entity for excise liability, the demand must be framed consistently with that finding, and an inconsistent demand warrants setting aside and remand for fresh adjudication.

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