2008 (7) TMI 53 - HC - Central Excise

Application for rectification of mistake remand order of tribunal is under challenge - remand of the matter merely because one of the party makes a request (for grant of an opportunity to lead further evidence) will not be proper exercise of the judicial powers - tribunal remanded matter without considering the facts In the rectification application, the tribunal could not have changed its order from remand to dismissal of the appeal - matter remanded to tribunal for de novo consideration

Summary

Issues:
1. Entitlement to interest on refund amount.
2. Burden of proof regarding duty burden passed on to buyers.

Entitlement to Interest on Refund Amount:
The High Court Bombay considered an appeal challenging a tribunal's order regarding the entitlement to interest on a refund amount. The tribunal had ruled in favor of the appellant, stating that interest was payable to them. However, the High Court noted that this part of the order was not under challenge. The focus then shifted to the second question of whether the appellant had proven that the duty burden on the product had been passed on to buyers. The tribunal found that the appellant had not discharged this burden and granted a remand for further evidence to be produced. A rectification application was made to correct an error in the order, which the tribunal accepted. The High Court emphasized that a remand should be based on judicial decision and not solely on a party's request for further evidence.

Burden of Proof Regarding Duty Burden Passed on to Buyers:
The tribunal's decision to remand the proceedings based on a rectification application was deemed improper by the High Court. The tribunal's failure to provide reasons for the remand decision was highlighted as a flaw in the legal process. The High Court emphasized that a remand should be a judicial decision based on legal principles, not merely a response to a party's request for further evidence. As a result, the High Court set aside the tribunal's order and remanded the appeal back to the tribunal for a fresh consideration in accordance with the law. The High Court concluded the judgment by disposing of the appeal without any costs.