2018 (11) TMI 1680 - HC - Central Excise

Maintainability of appeal - pleadings of Revenue disregarded by the Tribunal - Section 36B of the Central Excise Act - HELD THAT - The Tribunal after taking into consideration the order passed by the Commissioner while remanding the matter, confirmed the order of the Commissioner, insofar as it relates to the duty, which was dropped, because the files were opened with unauthenticated software. Though the assessee also filed an appeal as against the order demanding duty to the tune of ₹ 1.30 Crores of penalty and etc., they withdrew the appeal. The entire matter revolves on factual matrix and the adjudicating authority merely followed the remand order passed by the Tribunal. Thus, there is no error in the order passed by the Tribunal, nor any substantial question of law, much less a substantial question of law, arises for consideration. Appeal dismissed - decided against Revenue.

Issues:
1. Dismissal of Revenue's appeal by the Tribunal.
2. Reliance on unauthenticated software for opening files.
3. Compliance with the Tribunal's order by the Commissioner.
4. Confirmation of Commissioner's order by the Tribunal.

Issue 1 - Dismissal of Revenue's appeal by the Tribunal:
The Revenue appealed against an order by the Tribunal, questioning the dismissal of their appeal. The Tribunal remanded the matter for fresh adjudication before the Commissioner of Central Excise, Trichy. The Tribunal highlighted the usage of unauthenticated software for opening floppies, stating that files opened with such software should not be relied upon. The Commissioner, during de novo adjudication, utilized information from the floppies opened based on the password provided by the assessee/employee and disregarded the rest, complying with the Tribunal's directive. Both the assessee and the Department appealed against the Commissioner's order, with the Tribunal ultimately confirming the Commissioner's decision regarding the dropped duty due to the use of unauthenticated software. The Tribunal found no error in the Commissioner's order, as it aligned with the remand order, and concluded that no substantial question of law arose for consideration.

Issue 2 - Reliance on unauthenticated software for opening files:
The matter centered on the usage of unauthenticated software for opening files, with the Tribunal emphasizing that reliance on files opened with such software was not permissible. The Commissioner, in subsequent adjudication, based the decision on information obtained from the floppies opened using the password provided by the assessee/employee, while disregarding the remaining data. This approach was in line with the Tribunal's instructions, indicating a strict stance against utilizing information from files accessed through unauthenticated means.

Issue 3 - Compliance with the Tribunal's order by the Commissioner:
The Commissioner adhered to the Tribunal's order by conducting de novo adjudication and considering only the information sourced from the floppies opened with the password provided by the assessee/employee. By following the Tribunal's directive, the Commissioner ensured compliance with the legal process and maintained the integrity of the adjudication proceedings.

Issue 4 - Confirmation of Commissioner's order by the Tribunal:
The Tribunal reviewed the Commissioner's decision and confirmed the portion related to dropped duty due to the usage of unauthenticated software for opening files. Despite appeals from both the assessee and the Revenue, the Tribunal upheld the Commissioner's ruling, emphasizing the factual basis of the case and the adherence to the remand order. Consequently, the Tribunal dismissed the Revenue's appeal, finding no error in the Commissioner's decision and ruling out the existence of any substantial question of law warranting further consideration.

← Previous Next →