2007 (1) TMI 407 - AT - Central Excise

Summary

Issues involved: Jurisdiction of the lower appellate authority to entertain the assessee's appeal against a demand of duty by the Assistant Collector.

Summary:
The appeal before the Appellate Tribunal CESTAT, CHENNAI was taken up following a remand order from the Hon'ble Supreme Court. The dispute revolved around the eligibility of the appellants for exemption under Notification No. 116/69 for their product DARZAMOL INJECTION I.V. The Apex Court's decision affirmed the Order-in-Original passed by the Principal Collector of Central Excise, Madras. The impugned order was passed by the Collector of Central Excise (Appeals) in response to a demand of duty by the Assistant Collector. The Collector (Appeals) held that he had no jurisdiction to entertain the appeal against the Assistant Collector's decision. However, the Tribunal found that either of the decisions by the Assistant Collector was appealable under the Central Excises and Salt Act, 1944, and thus the Collector (Appeals) should have assumed jurisdiction. Consequently, the impugned order was set aside, and the case was remanded for a reasoned decision on merits by the Commissioner of Central Excise (Appeals), ensuring the assessee's right to be heard.

This judgment highlights the importance of jurisdictional issues in appeals related to excise duty demands and emphasizes the need for lower authorities to correctly interpret their jurisdiction under the relevant legal framework.