2005 (7) TMI 459 - AT - Central Excise

Summary

Issues:
1. Jurisdiction of the Tribunal to adjudicate on loss of goods and remission of duty.
2. Violation of Principles of Natural Justice in rejecting remission of duty request.

Jurisdiction Issue:
The case involved the Revenue's appeal against the Order granting remission of duty due to damaged goods by a rioting mob in the factory. The Counsel argued that as per Section 35B of the C.E. Act, matters decided by the Commissioner (Appeals) should be appealed before the Revisional Authority, not the Tribunal. Referring to a Larger Bench judgment, the Tribunal acknowledged the Counsel's position and rejected the Revenue's appeal. The Tribunal granted the Revenue liberty to file a revision petition before the appropriate authority with a condonation application.

Violation of Principles of Natural Justice Issue:
Regarding the assessee's appeal, it stemmed from the rejection of their remission of duty request by the Additional Commissioner without following due process. The Counsel contended that the Commissioner should have issued a Show Cause Notice and passed a speaking order after hearing the appellants, as per Principles of Natural Justice. The Tribunal agreed that the rejection communicated through a letter by the Additional Commissioner without following proper procedure violated natural justice. Consequently, the Tribunal ordered the Commissioner to issue a Show Cause Notice, hear the appellants, and pass a speaking order, thereby allowing the assessee's appeal.

In conclusion, the Tribunal addressed the jurisdictional issue by upholding the Counsel's argument and dismissing the Revenue's appeal while granting them the option to file a revision petition. Additionally, the Tribunal found merit in the violation of Principles of Natural Justice in the rejection of the remission request, leading to the allowance of the assessee's appeal for proper procedural adherence.