2011 (6) TMI 40 - AT - Central Excise

Jurisdiction - The appellant-unit joined the LTU at Chennai on 30.6.2008 and hence it stopped functioning as a unit under the jurisdictional Central Excise officers. Prior to joining the LTU which is organized on a functional basis rather than on a jurisdictional basis, the appellants had submitted an application dated 16.6.2008 praying for inclusion of new area within their premises for which they had registration certificate - Held that Since the original authority ceased to have jurisdiction to deal with the application dated 16.6.2008 on transfer of the jurisdiction he should have transferred the application to the LTU who assumed jurisdiction over the appellant-unit subsequent to their joining the LTU.

Summary

Issues:
Jurisdictional transfer of application to LTU, rejection of appeal by lower appellate authority based on extraneous considerations.

Jurisdictional Transfer of Application to LTU:
The appellant-unit joined the LTU at Chennai, ceasing to function under jurisdictional Central Excise officers. An application for inclusion of a new area within their premises was submitted before joining LTU, which was approved by the Assistant Commissioner. However, after joining LTU, the Assistant Commissioner withdrew the permission, stating lack of jurisdiction. The lower appellate authority rejected the appeal without considering the withdrawal's validity. The Tribunal held that the original authority, upon losing jurisdiction, should have transferred the application to LTU. The impugned order by the lower appellate authority was set aside, directing the transfer of the application to LTU for fresh consideration. LTU authorities were instructed to pass a decision within two months, allowing a reasonable opportunity for the appellants to be heard.

Rejection of Appeal by Lower Appellate Authority:
The lower appellate authority rejected the appellants' appeal based on extraneous considerations not related to the withdrawal of permission. The Tribunal found this rejection unjustifiable, emphasizing that the appeal should have been considered on its merits. Consequently, the Tribunal set aside the lower appellate authority's decision and directed the transfer of the application to LTU for proper evaluation within a specified timeframe. The Tribunal's ruling focused on ensuring procedural fairness and adherence to jurisdictional requirements, highlighting the importance of correct application handling post-jurisdictional changes.