1998 (10) TMI 256

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....mpugned order is as follows : "M/s. Mahavir Group of Industries, M/s Rupani Metal Reed Manufacturing Works and M/s. Rupani Textile Industries should collectively pay Central Excise duty totalling Rs. 5,54,922.00 (Rupees Five lakh Fifty Four Thousand Nine Hundred Twenty Two only) (Basic Excise Duty Rs. 5,17,527.42 + Special Excise Duty Rs. 7,394.50) forthwith under the provision of Rule 9(2) of Central Excise Rules, 1944 read with Section 11A(2) of the Central Excises and Salt Act, 1944. I confiscate the seized goods valued at Rs. 16,000/- under Rule 173Q of Central Excise Rules, 1944. These goods having been handed over to Shri Dhirajlal N. Rupani under Supratnama, those goods may be redeemed, if required, by Shri Dhirajlal N. Rupani ....

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....ni Metal Reeds Mfg. Works and Others. By this, the Collector has identified three of them as independent manufacturers. Accordingly, he was not right in clubbing of clearances of all the three units. He submitted that in the similar facts and circumstances, the Supreme Court in the case of Gajanan Fabrics & Distributors v. Collector of Central Excise, Pune - 1997 (92) E.L.T. 451 observed that duty has been demanded from all the units collectively and there was no reason to arrive at the conclusion that other units are dummy units. He said that the judgment of the Supreme Court is relevant and accordingly he read entire judgment which is as under : "The order under appeal was passed by the Customs Excise and Gold (Control) Appellate Tribu....

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....llector had confirmed, in the sum of Rs. 11,84,708.51, the demand made in the show cause notices upon all seven units and their partners or Directors. Having regard to his conclusion that all units other than Gajanan Weaving Mills were fictitious units, the sequitur, one would have assumed could only be that it was Gajanan Weaving Mills which was the assessee and liable to satisfy the demand. By confirming the demand upon all the seven units the Collector appears, however, to have treated them all as assessees and, implicitly recognised their independent existence. 3. The facts of these cases, therefore, require to be re-considered, having regard also to the law that has now been settled by judgments of this Court and the High Courts sub....