2008 (5) TMI 464 - AT - Central Excise

Rectification of mistake application - Held that - 6 months have elapsed from the date of final order and therefore, the ROM application is required to be rejected - ROM application rejected.

Summary

Issues:
1. Rectification of mistake in the order passed by the Tribunal after the expiry of 6 months.
2. Validity of Rectification of Mistake (ROM) application after the lapse of 6 months from the date of the final order.

Analysis:
1. The case involved the Revenue filing a Rectification of Mistake (ROM) application against the Final Order passed by the Tribunal after the expiry of 6 months. The Hon'ble High Court of Karnataka in a similar case had held that any rectification order passed after six months of the Tribunal's order would not be sustainable. The High Court set aside the Tribunal's order passed for rectification of mistake under Section 35C(2) due to the delay in passing the order within the stipulated time frame.

2. The respondent's Consultant argued that since 6 months had elapsed from the date of the final order, the ROM application should be rejected. On the other hand, the JDR representing the Revenue contended that there was no fault on the part of the Revenue as the matter was not listed before six months, and thus, the ROM should be heard. However, the Tribunal, after careful consideration, relied on the Karnataka High Court's judgment and concluded that as the six-month period had lapsed in the present case, the ROM application could not be entertained. Therefore, the ROM application was rejected in line with the Karnataka High Court's decision.

3. The Tribunal further applied the same reasoning to another ROM Application where the Revenue was aggrieved with a different Final Order. The Tribunal found that the findings from the Karnataka High Court's judgment equally applied to this case, leading to the rejection of the ROM application in that matter as well.

In conclusion, the Tribunal dismissed the ROM application filed by the Revenue as it was made after the lapse of the 6-month period from the date of the final order, in accordance with the precedent set by the Karnataka High Court. The decision emphasized the importance of adhering to the statutory timelines for rectification of mistakes in orders to maintain the validity and sustainability of such actions.