2009 (2) TMI 841 - HC - Central Excise

Principles of consistency - the recipients of inputs had received the inputs which were used in the manufacture of goods cleared on payment of duty - Section 35 G of the Act

Summary

Issues involved:
Appeals under Section 35-G of the Central Excise Act, 1944 challenging a common order passed by the Customs Excise and Service Tax Appellate Tribunal, New Delhi.

Analysis:
The High Court considered 21 appeals filed by the revenue challenging a common order passed by the Tribunal. The Tribunal had found that the recipients of inputs had used them in the manufacture of goods cleared on duty payment, with no evidence of an alternate source of inputs. The Tribunal relied on its previous decisions in similar cases, including M/s Adhunik Steels Ltd and M/s Neepaz Steels (India), indicating consistency in its views. The High Court noted the revenue's acceptance of the Tribunal's orders in these cases, applying the principle of consistency. It was observed that the inputs were used in the final product without any evidence of an alternative supply method. Consequently, the High Court found no substantial question of law for adjudication under Section 35-G of the Act and dismissed the appeals.

The judgment emphasized the importance of consistency in decisions, especially when the Tribunal had consistently held a particular view in similar cases. The High Court highlighted the findings that the inputs were utilized in the final product and that there was no proof of any other method of input supply. This lack of evidence regarding alternative supply methods further strengthened the Tribunal's decision, leading to the dismissal of the appeals. The Court's analysis focused on the factual findings and the absence of legal issues warranting further consideration, ultimately resulting in the rejection of the appeals.

In conclusion, the High Court's judgment addressed the appeals challenging the Tribunal's order, emphasizing the significance of consistency in decision-making and the absence of substantial legal questions for consideration. By examining the factual findings and the revenue's acceptance of previous Tribunal orders, the Court concluded that the appeals lacked merit and were therefore dismissed. The judgment underscored the Tribunal's findings regarding input usage and the absence of evidence supporting alternative supply methods, reinforcing the decision to reject the appeals.