2010 (4) TMI 815 - HC - Central Excise

Extended period of limitation - Held that - order of the Commissioner (Appeals) shows that the appeals of the respondents had been allowed on merits and not on the ground that the show cause notice was time-barred. In absence of such opportunity having been given to the appellant, the impugned order of the Tribunal suffers from the breach of the principles of natural justice and as such, cannot be sustained, appeals are allowed. order of the Tribunal set aside.

Summary

Issues:
Appeal dismissed on the ground of limitation without granting an opportunity of hearing to the appellant-revenue.

Analysis:
The High Court noted that the Tribunal had dismissed the appeal of the appellant-revenue solely on the basis of proceedings being time-barred without providing any opportunity of hearing on this aspect. The Court observed that the impugned order did not show that the appellant had been given a chance to present their case regarding the extended period for assessment. The Court considered this a violation of the principles of natural justice. The respondent argued that the issue of limitation, being a question of fact, could be addressed at any stage of the proceedings. However, the Court emphasized that the Tribunal should have allowed the appellant an opportunity to address the limitation issue before dismissing the appeal.

The Court analyzed the Tribunal's order and found that it lacked any indication of the appellant being called upon to present submissions regarding the invocation of the extended period of limitation. The Court also highlighted that the Commissioner (Appeals) had allowed the respondent's appeals on merits, not on the ground of the show cause notice being time-barred. Therefore, the Court concluded that if the Tribunal intended to dismiss the appeals based on limitation, it should have provided the appellant with an opportunity to respond. Since this opportunity was not given, the High Court held that the impugned order of the Tribunal violated the principles of natural justice and could not be upheld.

Consequently, the High Court allowed the appeals, set aside the impugned order of the Tribunal, and restored the appeals to the file of the Tribunal. The Court directed the Tribunal to reconsider the appeals in accordance with the law, emphasizing the importance of granting a fair opportunity of hearing to both parties before making a decision.