2013 (7) TMI 369 - AT - Central Excise

Order beyond the scope of SCN -Whether Adjudicating authority be given a leeway for adjudicating the issue, even on the charges not mentioned in the show cause notice? Held that - Adjudicating authority is totally at variance of the settled position of law - Revenue authority cannot go beyond the charges levied in the show cause notice. Adjudicating authority directed to reconsider the issue afresh of allowing CENVAT Credit to the Appellant on the inputs, keeping in mind the Chartered Engineer s certificate produced - Directed to pass an order within the framework of the show cause notice Remanded back to the Adjudicating Authority. In favor of Appellant.

Summary

Issues involved:
- Stay petitions for waiver of pre-deposit of CENVAT Credit amount
- Adjudication of in-eligible benefits under Notification No. 67/1995
- Authority's jurisdiction to go beyond show cause notice charges
- Remand of the matter back to the adjudicating authority
- Verification of Chartered Engineer's certificate for CENVAT Credit on inputs

Analysis:

The judgment by the Appellate Tribunal CESTAT AHMEDABAD involves several key issues. Firstly, the Stay Petitions were filed for the waiver of pre-deposit of CENVAT Credit amounts deemed ineligible by the adjudicating authority. Upon review, it was noted that the first appellate authority did not uphold the Order-in-Original but remanded it back to the adjudicating authority. Consequently, the Tribunal dismissed the application for waiver as there was no specific amount to be stayed. The appeals themselves were then taken up for disposal due to the narrow scope of the issue.

Regarding the in-eligible benefits under Notification No. 67/1995, the appellant had procured materials for fabrication during a specific period. The Chartered Engineer's certificate was submitted and accepted by the adjudicating authority. However, the authority went beyond the show cause notice by including unalleged in-eligible benefits. The Tribunal found the first appellate authority's conclusion incorrect as it allowed the adjudicating authority to consider charges not mentioned in the show cause notice, contrary to established legal principles.

In terms of remanding the matter back to the adjudicating authority, the Tribunal referenced a Supreme Court judgment and directed the authority to reconsider the issue of allowing CENVAT Credit based on the Chartered Engineer's certificate and duty paying documents. The adjudicating authority was instructed to adhere to the show cause notice framework and principles of natural justice during the reconsideration process.

Ultimately, the impugned order of the first appellate authority was set aside, and the appeals were allowed by way of remand to the adjudicating authority for a fresh consideration of the CENVAT Credit issue based on the Chartered Engineer's certificate and supporting documents.

This detailed analysis highlights the various legal aspects and procedural steps taken by the Appellate Tribunal in its judgment, addressing each issue comprehensively and providing clarity on the decision-making process.