2011 (9) TMI 899 - HC - Central Excise

Validity of ZTribunal s order - Held that - Assessee had not contested the duty demand of 12, 395/- as confirmed by the Commissioner (Appeals) because on these basis the appeal of the Department and the cross-objection of the assessee were disposed of. Tribunal omitted to consider the department s appeal on merits. Only on the assessee not contesting the Commissioner (Appeals) order and thereby not pressing his cross appeal would not permit the Tribunal to dismiss the Department s appeal as well. The appeal of the Department was to challenge that portion of the Commissioner (Appeals) order which was adverse to the department. Such appeal had to be examined on merits - matter remanded back - Decided in favour of Revenue.

Summary

Issues:
Appeal against judgment dated 4-6-2010 - Tribunal's omission to consider department's appeal on merits - Assessee not contesting duty demand - Tribunal dismissing department's appeal.

Analysis:

The High Court of Gujarat heard an appeal against a judgment dated 4-6-2010. The Tribunal's judgment was reviewed, revealing that the assessee did not contest the duty demand of Rs. 12,395 as confirmed by the Commissioner (Appeals). Consequently, the Tribunal dismissed both the Department's appeal and the cross-objection of the assessee based on this non-contestation. However, the High Court noted that the Tribunal failed to consider the Department's appeal on its merits. The Tribunal's decision to dismiss the Department's appeal solely because the assessee did not contest the Commissioner (Appeals) order was deemed inappropriate. The Department's appeal was intended to challenge the adverse portion of the Commissioner (Appeals) order and should have been examined on its merits. Therefore, the High Court set aside the impugned order dated 4-6-2010 and restored the Department's appeal to the Tribunal for a proper examination in accordance with the law.