2008 (9) TMI 819 - AT - Central Excise

Summary

Issues involved:
The issues involved in the judgment are limitation issue not dealt with in a speaking order by the learned Commissioner (Appeals) and the direction to pay duty under Rule 57CC of Central Excise Rules beyond the scope of the Show Cause Notice.

Limitation Issue:
The Appellant's grievance was that the learned Commissioner (Appeals) did not address the limitation issue properly, stating that the ground was not admissible due to the inability to verify relevant facts. The Appellant's representative argued that the proceeding should have focused on the classification matter rather than determining liability under Rule 57CC. It was contended that the Authorities went beyond the scope of the Show Cause Notice, making their orders unsustainable.

Applicability of Rule 57CC:
The Appellant's representative highlighted that the show cause notices did not mention Rule 57CC, yet the Authorities decided on this issue based on audit observations. It was argued that the Appellant was not given a chance to defend against the invocation of Rule 57CC, which rendered the orders incorrect. The Departmental Representative, however, argued that the Appellant had an opportunity to address this issue during the hearing.

Judgment:
Upon hearing both sides and examining the record, the Tribunal found fault with the Commissioner (Appeals) for not utilizing his authority to address the time bar issue. The Tribunal emphasized the importance of charges being clearly brought against the assessee and their defense being sought before passing an order. It was noted that the orders went beyond the scope of the show cause notices, making them legally flawed. Consequently, the impugned order was set aside, and the Appeal was allowed.

Operative part of the order with reasons of decision was pronounced in the open court on 9-9-2008