2005 (8) TMI 460 - AT - Central Excise

Summary

Issues:
- Appeal against remand order by Commissioner (Appeals) for denovo decision on duty demand based on burning/melting loss during manufacture of copper/brass sheets.

Analysis:
1. Remand Order by Commissioner (Appeals):
- The appeal was filed against the order of the Commissioner (Appeals) who remanded the case for a denovo decision by the lower authority. The Commissioner directed de novo proceedings as the lower authority did not give a finding on the burning loss issue. The appellant argued that the Commissioner's order exceeded the scope of the show cause notices.

2. Burning/Melting Loss Issue:
- The appellant manufactured copper/brass sheets and claimed 5.75% as burning/melting loss during the manufacturing process. The department demanded duty on the basis that the quantity of final products should match the quantity of inputs used, disallowing any melting loss. The original authority dropped the show cause notices as they were not based on a sound mathematical formula.

3. Scope of Show Cause Notice:
- The show cause notice alleged that the appellant short paid central excise duty by showing melting loss during production. The Commissioner's direction to find out the exact melting loss was deemed beyond the notice's scope. The issue was whether burning loss was admissible, not the exact amount. The Commissioner's decision went beyond the original authority's ruling, supporting the appellant's contention.

4. Decision:
- The Tribunal allowed the appeal, finding that the Commissioner's direction for de novo proceedings exceeded the scope of the show cause notice. The issue of burning loss admissibility was central, and the Commissioner's order went beyond the original authority's decision. The appellant's argument was upheld, leading to the appeal being allowed.

This judgment highlights the importance of adherence to the scope of show cause notices and the need for decisions to align with the issues raised therein. The ruling emphasizes the necessity for authorities to base their actions on sound legal grounds and avoid exceeding the specified parameters of the case at hand.