2009 (6) TMI 845 - AT - Central Excise

Summary

Issues: Department's appeal against small-scale exemption granted to respondents, validity of review order-cum-authorization, maintainability of the appeal.

Analysis:
1. The Department filed an appeal against the lower appellate authority's decision granting small-scale exemption to the respondents. The Department argued that the brand name was not registered in the respondents' name, and the owner of the brand name received royalty from the respondents. The respondents claimed that the brand name was assigned to them by the owner, justifying the exemption.

2. The respondents' consultant highlighted that the original authority had previously granted the small-scale exemption to the respondents for another period, which was accepted by the Department after review. The Department confirmed this fact. Moreover, a preliminary objection was raised regarding the appeal filed by the Department based on a review order-cum-authorization signed by only one Commissioner, which was deemed invalid by citing relevant legal precedents.

3. The Tribunal examined the case records and found that the appeal was indeed based on an invalid review order-cum-authorization signed by a Commissioner who had retired, not by the required Committee of two Commissioners. Citing legal provisions and precedents, the Tribunal emphasized the necessity for a valid authorization by a Committee of two Commissioners to file an appeal. As the Department couldn't rectify the error, the appeal was dismissed as not maintainable. The respondents' cross objection was also disposed of accordingly.