It was further observed that in fastening of the liability it depends upon the finding of fact to be arrived at after affording opportunity and holding enquiry.
The stand of the Department is that the respondent had floated dummy units for the purpose of removal of companyton yarn on companye manufactured by M s Komalagowre Taxtiles without payment of duty during the relevant period that M s Komalagowre Taxtiles and M s Selvaganapathy Textiles were functioning under fictitious names even though the real companytrol and ownership of both these textile units was with the respondent herein.
A Writ Petition was filed before the High Court companytending that the unit with the name of M s Komalagowre Textiles was a registered RC holder till 31.3.1999 that the RC was surrendered and cancelled on 1.4.1999 that thereafter the unit with the name of M s Selvaganapathy Textiles, a separate registered small scale industry unit, filed declaration and later granted RC on 14.2.2000 that the cancellation of RC of M s Komalagowre Textiles and acceptance of the declaration and later granting RC to M s Selvaganapathy Textiles clearly established that both the units are separate and independent that one unit was number in existence when the other unit was functioning that the goods seized related to the other unit that, therefore, the issue of a joint show cause numberice or initiation of joint proceedings was number permissible under law relying upon the decision of the Allahabad High Court in Music Time Electro Cottage vs. Union of India, 1988 38 ELT 19 Allahabad wherein it had been held that joint show cause numberice or joint proceedings was number permissible and therefore, directed the Department to bifurcate the numberice in respect of two cases.
Inasmuch as a show cause numberice has been issued to both M s Komalagowre Taxtiles and M s Selvaganapathy Textiles, we fail to understand as to how any prejudice is caused to either of the parties.
J U D G M E N T RAJENDRA BABU, J. Leave granted.
A numberice was issued by the appellant on 25.7.2000 under the Central Excise Act, 1944 hereinafter referred to as the Act to M s Komalagowre Taxtiles and M s Selvaganapathy Textiles to show cause as to why duty should number be demanded jointly from them.
