2009 (2) TMI 535 - AT - Central Excise

Summary

Issues:
Classification of parts of Harvesting Combine under Heading 8433.00 or 8483.90, Permissibility of reviewing final order based on a show cause notice, Scope of rectification application under Section 35-C(2) of the Central Excise Act.

Classification Issue:
The appeal dealt with the classification of parts of a Harvesting Combine under Heading 8433.00 or 8483.90. The respondent claimed classification under 8433.00, while the original authority classified them under 8483.90. The Tribunal upheld the original authority's classification, stating that reclassifying based on a show cause notice from 2006 would be impermissible as it would amount to reviewing the final order, which is not allowed by law.

Reviewing Final Order:
The Tribunal referred to a previous case where it was held that a rectification application should not be used to seek a re-hearing of the appeal or to reopen the classification dispute. It emphasized that rectification applications are not meant to allow unsuccessful parties to prolong proceedings or seek a review similar to civil proceedings under the Civil Procedure Code. The Tribunal highlighted the distinction between a mere erroneous decision and an error apparent on the face of the record, stating that rectification applications should be based on clear, patent errors that do not require elaborate arguments.

Scope of Rectification Application:
The Tribunal concluded that there was no error apparent on the face of the record in the Final Order and rejected the application filed by the respondent. It clarified that the power of rectification under Section 35-C(2) of the Central Excise Act should be exercised carefully and within its intended scope, without allowing disgruntled parties to misuse it for prolonging proceedings. The judgment emphasized that rectification applications are not a substitute for review, revision, or appeal processes explicitly provided for by statute.

This judgment highlights the importance of adhering to the prescribed legal procedures and limitations when seeking rectification of mistakes in final orders, especially concerning classification disputes and the scope of rectification applications under the Central Excise Act.