2003 (8) TMI 413 - AT - Central Excise

Summary

Issues: Rectification of impugned Final Order regarding breach of export obligations and proper sanction from Development Commissioner.

Analysis:
1. The Revenue filed a ROM application seeking rectification in the impugned Final Order, which set aside the order-in-original due to lack of permission from the Development Commissioner as per the Government's Circular.
2. The learned SDR argued that permission for recovery proceedings was already granted to the Department through a letter dated 13-2-2001. However, the Counsel contended that this letter did not contain permission from the Development Commissioner, but rather instructed for necessary action if deemed fit.
3. The Tribunal, in the impugned final order, relied on a previous judgment and the Government's Circular to set aside the order-in-original due to lack of proper sanction from the Development Commissioner regarding the breach of export obligations by the respondents.
4. The letter dated 13-2-2001 was issued by the Asstt. Development Commissioner and not the Development Commissioner, as required by the Circular, authorizing the Commissioner to issue a Show Cause Notice for duty demand on account of breach of export obligations. A subsequent order showed that the proceedings against the respondents were dropped after review, casting doubt on the Department's legal competence to re-initiate duty recovery proceedings.
5. The Tribunal found no mistake of fact or law in the impugned final order to warrant rectification, leading to the dismissal of the ROM application filed by the Revenue for lack of merit.