2018 (5) TMI 1791 - AT - Central Excise

Rectification of mistake - wrong quoting of the provisions under which demand has been confirmed - whether by only merely putting of the information, provisions of the section will vitiate the merit of the case laws? - Held that - The departmental appeal on the provisions of the Section 11A2 is allowed as held in case of Collector of Central Excise, Kolkata Vs. Pradyumna Steel Ltd. 1996 (1) TMI 127 - SUPREME COURT OF INDIA - appeal allowed - decided in favor of Revenue.

Summary

Issues:
Appeal against Order-in-Original for wrong quoting of provisions and rectification of mistake; Departmental appeal allowed on provisions of Section 11A2; Imposition of penalty on appellant No. 3 and 4; Dismissal of appeal in respect of noticee No. 3 and 4.

Analysis:

1. The appeal was filed by the Department against the Order-in-Original due to the wrong quoting of provisions under which demand was confirmed. The Tribunal noted that the correct course of action would have been to issue a corrigendum to the impugned order. However, since this was not done, the Department approached the Tribunal for rectification of the mistake. The Tribunal considered whether the mere quoting of information without correctly citing the provisions would affect the merit of the case laws. The appeal was allowed by the Tribunal based on the provisions of Section 11A2, as established in the case of Collector of Central Excise, Kolkata Vs. Pradyumna Steel Ltd. (1996 (82) ELT 441 (S.C.)).

2. In relation to the imposition of penalties on appellant No. 3 and 4, the Tribunal observed that the Department had not filed a separate appeal specifically addressing this issue. A defect memo was issued by the Registry highlighting this omission. Consequently, the Tribunal dismissed the appeal concerning noticee No. 3 and 4, as the Department had not pursued this aspect in a separate appeal. The Departmental appeal was allowed only on the grounds related to the provisions of Section 11A2, as mentioned earlier.

This judgment highlights the importance of correctly citing provisions in legal orders and the necessity of following the appropriate procedures for rectification of mistakes. It also underscores the significance of addressing all relevant issues in separate appeals to ensure a comprehensive review by the Tribunal.