2003 (9) TMI 630 - AT - Central Excise

Summary

Issues:
Appeal against adjudication order, Contrary order to Tribunal's direction, Duty demand on multiple units, Requirement of issuing show cause notice to all units.

Adjudication Order Appeal:
The appeal was directed against Order No. 7/2001 of the Commissioner, Central Excise & Customs, Cochin, following the Tribunal's Final Order No. 1086 to 1091/2001. The main contention was that the order passed by the Commissioner was contrary to the Tribunal's direction, necessitating its quashing. The duty demand was made on one unit, although production was by multiple units. The Tribunal had set aside an earlier order and remanded the matter for de novo consideration, emphasizing the need for issuing show-cause notices to all units.

Contrary Order to Tribunal's Direction:
The learned Counsel argued that since no appeal was filed against the Tribunal's order, it had become final. The Commissioner's failure to issue show cause notices to all units before re-adjudicating the case was highlighted as a violation of the Tribunal's direction. The impugned order was passed without observing this crucial requirement, leading to the demand for its setting aside.

Duty Demand on Multiple Units:
The records revealed that the impugned order was issued without sending notices to other units involved in production. The Commissioner's justification for not issuing separate notices to each unit was based on legal principles regarding penalty imposition on proprietary firms. However, the failure to issue notices to all units, as directed by the Tribunal, was deemed a significant flaw in the adjudication process.

Requirement of Issuing Show Cause Notice to All Units:
The Tribunal's order had become final due to the absence of an appeal, making it imperative for the Commissioner to adhere to its directions. The failure to issue show cause notices to all units, as mandated by the Tribunal, rendered the subsequent order invalid. Consequently, the appellant's argument that the order should be set aside for deviating from the Tribunal's directive was upheld, leading to the allowance of the appeal.