2011 (1) TMI 1233 - AT - Central Excise

Summary

Issues:
1. Time-barred appeal due to delay in filing.
2. Challenge to the imposition of a condition on Cenvat credit utilization.

Analysis:
1. The appellant filed an appeal against an order passed by the Commissioner of Central Excise, which was communicated by the Joint Commissioner. The Revenue raised an objection, stating the appeal was time-barred as the order was communicated on 4-8-2006, and the appeal was filed on 26-9-2007. The appellant argued that they requested the speaking order from the Commissioner, but only received a communication from the Deputy Commissioner on 18-6-2007. The Tribunal found that since the appellant did not receive the speaking order despite specific requests, the appeal was not time-barred as per the relevant Notification. Hence, the appeal was not dismissed on grounds of being time-barred.

2. On the merits of the case, the appellant challenged a condition imposed on the non-utilization of Cenvat credit for inputs and capital goods in the distillery unit for the payment of Central Excise Duty on sugar. The Revenue justified the condition, stating that molasses and capital goods in the distillery cannot be considered as inputs for sugar production. The Tribunal noted that the order imposing the condition was passed without giving the appellant an opportunity to be heard. Therefore, the Tribunal set aside the order and remanded the issue back to the Commissioner of Central Excise for fresh consideration after providing an opportunity for the appellant to present their case and taking into account relevant Tribunal decisions. The appeal was disposed of in favor of the appellant on this issue.