2006 (11) TMI 495 - AT - Central Excise

Summary

Issues: Classification of product under Central Excise Tariff Act, Permissibility of review under Section 35C(2) of the Central Excise Act.

Classification Issue Analysis:
The dispute in the appeals revolved around the classification of the product "Sanjivini Strong Balm" under the Central Excise Tariff Act. The appellant claimed it to be an Ayurvedic medicament under S.H. 3003.03, while the respondent classified it under S.H. 3003.19, leading to a duty demand for the disputed period. The mistake alleged by the Department related to a specific sentence in the Final Order, where the Revenue's non-contestation of certain facts was noted. The Department contended that this fact was contested, leading to the mistake claim. However, the Tribunal found that the Department's applications were without merit as the alleged error did not affect the vital findings recorded by the lower authorities, which were undisputed by the appellant.

Review Permissibility Analysis:
The issue of permissibility of review under Section 35C(2) of the Central Excise Act was also examined. The Counsel argued that seeking to change the entire decision taken by the Tribunal through an application would amount to a review, not permissible under the law. Citing the Calcutta High Court's judgment in a related case, it was highlighted that review and rectification were distinct concepts. The Tribunal concurred with this argument, emphasizing that changing the entire findings recorded by the Tribunal would constitute a review, which was not allowed under the relevant legal provision. The Counsel further pointed out that even if the applications were allowed, the merits of the case would still favor the assessee based on a Supreme Court judgment. Consequently, the Tribunal dismissed the applications, affirming that the case on merits would remain in favor of the assessee despite the review sought by the Department.

In conclusion, the Tribunal, comprising Shri P.G. Chacko and P. Karthikeyan, dismissed the Department's applications concerning the alleged mistake in the Final Order related to the classification of "Sanjivini Strong Balm." The decision highlighted the importance of not allowing a review that seeks to change the entire decision taken by the Tribunal and emphasized the distinction between review and rectification under the law. The judgment underscored the need for applications under Section 35C(2) of the Central Excise Act to adhere to legal limitations and not embark on a "roving expedition" into the case's merits beyond the scope permitted by the law.