2009 (10) TMI 606 - HC - Central Excise

Application for rectification - It is no doubt true that on behalf of the respondents the learned counsel has pointed out to us that initial order was remanded earlier by the Tribunal to the A.O. only for the purpose of de novo consideration in so far as calculations are concerned and therefore A.O. had rightly restricted himself in terms of the order of remand to only calculations which the Tribunal has accepted - Considering the contentions raised by the appellants as mentioned above the points raised by them ought to have been decided and considered - Appeals disposed of

Summary

Issues:
Appeal against rejection of rectification application due to non-consideration of contentions in initial order.

Analysis:
The appellants raised the issue that their written submissions were not adequately considered in the initial order passed on 3-2-2009. Despite filing an application for rectification, it was rejected on the basis that the arguments had been considered. The High Court examined the grounds of appeal, written submissions, and the order on the rectification application. The respondents argued that the initial order was remanded by the Tribunal for de novo consideration only in terms of calculations, which the A.O. rightly adhered to. However, the Court noted that the Tribunal should have explicitly rejected the contentions if they were deemed irrelevant, which was not evident in either the Tribunal's order or the A.O.'s order.

The Court emphasized that the Tribunal is the final fact-finding authority and should have addressed the raised points in the written submissions. As the contentions were not adequately considered, the Court concluded that the impugned order needed to be set aside. The matter was directed to be restored to the Tribunal for a fresh decision in accordance with the law. The Court specifically instructed the Appellate Tribunal to confine itself to the issue of calculation during the fresh proceedings.

In summary, the High Court allowed the appeal, finding that the initial order failed to consider the appellants' contentions adequately. The matter was remanded to the Tribunal for a fresh decision, emphasizing the importance of addressing all raised points in the written submissions. The Appellate Tribunal was instructed to focus solely on the issue of calculation during the reconsideration process.