1. At the outset, Shri J.P. Kaushik, ld. Advocate submits that the SCN stipulated that M/s. Shri Radha Krishna Dyes Chem (P) Limited, M/s.
G.L. Dyes (P) Limited and M/s. Excelsior Fabrics (P) Limited were dummy units of M/s. East India Cotton Manufacturing Co. Limited; that alleging that these dummy units have neither any knowledge nor any interest in the purchase of raw materials; that they are not interested at what rate and from what source the raw material is being procured; that these dummy units were created by the appellants in order to avail the benefit of Notification No. 175/86, dated 1-3-86. He submits that no SCN was issued to these dummy units. Thus there has been complete failure of natural justice and prays that on this count alone, the appeal may be allowed.
2. Shri K. Srivastava, ld. SDR submits that the SCN was issued to the appellants and since the appellants' company had created other units only for availing the benefit of Notification No. 175/86 and, therefore there was no necessity of issuing notice to the other firms. He submits that since all the facts were stated in the memo of SCN and since remaining 3 companies were being controlled by the appellants' company, therefore there was no failure of justice or violation of principles of natural justice.
3. Heard the rival submissions. On careful consideration of the submissions, we find that there are four units. We note that SCN has been issued to only one unit. No SCN was issued to other units. Thus, there was violation of principles of natural justice. In this view of the matter, the appeal is allowed.