2006 (11) TMI 475 - AT - Central Excise

Summary

Issues Involved:
1. Delay in filing the appeal.
2. Validity of the Review Committee's decision.
3. Impact of the Board's circular dated 6-2-2006.

Summary:

1. Delay in Filing the Appeal:
The Commissioner of Central Excise, Coimbatore, received the impugned order on 9-11-2005 and filed the appeal on 10-4-2006, resulting in a delay of 60 days. The application for condonation of delay cited conflicting opinions among the Review Committee members and procedural formalities u/s 35B(2) of the Central Excise Act as reasons for the delay. The Board's Circular No. 825/2/2006-CX dated 6-2-2006, which was received on 13-3-2006, was also referenced to justify the delay.

2. Validity of the Review Committee's Decision:
The Review Committee, constituted u/s 35B(1B) of the Central Excise Act, comprised the Commissioner of Central Excise, Salem, and the Commissioner of Central Excise, Coimbatore. On 30-1-2006, the Commissioner (Salem) recommended filing an appeal, while the Commissioner (Trichy) officiating as Commissioner (Coimbatore) accepted the order on 1-2-2006. The Tribunal noted that there was no unanimous decision by the Review Committee, as required u/s 35B(2). The Tribunal emphasized that the Review Committee must form a unanimous opinion, and the separate decisions by the Commissioners did not constitute a valid review.

3. Impact of the Board's Circular Dated 6-2-2006:
The Board's circular directed that in case of a difference of opinion within the Review Committee, the decision to file an appeal should prevail. However, the Tribunal held that the circular had no legal sanction and could not override the statutory requirement of a unanimous decision by the Review Committee u/s 35B(2). The circular was deemed to influence the review process detrimentally and was not applicable retrospectively to validate the Commissioner (Salem)'s decision dated 30-1-2006. Furthermore, the Tribunal found no satisfactory explanation for the delay beyond 13-3-2006, when the circular was received.

Conclusion:
The Tribunal dismissed the appeal and the application for condonation of delay due to the absence of a valid review by the Review Committee as required u/s 35B(2) of the Central Excise Act. The Board's circular was found to lack legal sanction and could not alter the statutory requirements for the Review Committee's decision.