2002 (4) TMI 838 - AT - Central Excise

Summary

Issues:
Classification of final product for Modvat credit, Time-barred appeal before Commissioner (Appeals)

Classification of Final Product for Modvat Credit:
The case involved a dispute regarding the classification of the final product for Modvat credit. The appellants claimed that their final product should be classified under CSH 4819.19, making them eligible for a duty credit of 16%. However, the jurisdictional Deputy Commissioner classified the product under CSH 4410.90, which would disallow the credit under Rule 57C(1) of the Central Excise Rules, 1944. The appellants argued that the decision on the classification dispute would directly impact their entitlement to take Modvat credit on the inputs used in manufacturing the final product. They contended that the Commissioner (Appeals) should have waited to decide on the classification issue before ruling on the Modvat credit dispute.

Time-barred Appeal Before Commissioner (Appeals):
The Commissioner (Appeals) rejected the appellants' appeal on the grounds of being time-barred. The appeal was filed against the order-in-original passed by the Assistant Commissioner, and the Commissioner (Appeals) found discrepancies in the dates of receipt of the order. The appellants failed to provide evidence to support their claim of receiving the order later than determined by the appellate authority. Despite later attempts to explain the delay, the Commissioner (Appeals) upheld the time-barred status of the appeal. The Tribunal acknowledged that the appellants should have filed a delay condonation application along with their appeal or at least in response to the notice from the Commissioner (Appeals). However, the Tribunal also noted that the Commissioner (Appeals) should have considered the classification issue before dismissing the appeal summarily.

In conclusion, the Tribunal set aside the order of the Commissioner (Appeals) and remanded the case back to the lower appellate authority. The lower appellate authority was directed to first decide on the classification appeal in accordance with the law and principles of natural justice. Following a decision on the classification issue, the Modvat appeal should be disposed of similarly, providing the appellants with a reasonable opportunity to explain the delay in filing the appeal.