2003 (11) TMI 475 - AT - Central Excise

Summary

Issues: Jurisdiction of Single Member Bench, Compliance with Section 35F, Pre-deposit requirement, Remand for decision on merit

Jurisdiction of Single Member Bench:
The judgment addresses the issue of whether a case involving duty and penalty exceeding Rs. 10 Lakhs can be heard by a Single Member Bench. The judge interprets Section 35D (3) of the Central Excise Act, 1944, noting that the limit of Rs. 10 Lakhs applies separately to duty, fine, and penalty. Since the duty and penalty in this case do not individually exceed Rs. 10 Lakhs, the judge rules that the case can be heard by a Single Member Bench.

Compliance with Section 35F:
The Commissioner (Appeals) had dismissed the appeals citing non-compliance with Section 35F of the Central Excise Act, 1944. The appellant's advocate argues that the duty demand period was time-barred up to a certain date, pointing out the specific amounts involved. The judge directs the appellants to pre-deposit a sum of Rs. 3 Lakhs within eight weeks and report compliance to the Commissioner (Appeals). Upon such pre-deposit and compliance, the impugned order is set aside, and the matter is remanded to the Commissioner (Appeals) for a decision on merit after providing a reasonable opportunity for a hearing.

Pre-deposit Requirement:
In light of the compliance issue, the appellants are instructed to pre-deposit Rs. 3 Lakhs within a specified timeframe. The judge waives the pre-deposit of the balance duty and penalty for all appellants subject to the initial Rs. 3 Lakhs pre-deposit.

Remand for Decision on Merit:
The judgment allows the appeal by way of remand, outlining the terms for remand as per the compliance and pre-deposit requirements. The matter is to be reconsidered by the Commissioner (Appeals) for a decision on merit after ensuring a fair hearing opportunity for the appellants.