2007 (9) TMI 167 - HC - Central Excise

Comm.(A) is not vested with the power to remand back cases consequent to the specific amendment in this regard carried by the Finance Act, 2001 w.e.f. 11.5.01 Hence revenue appeal is allowed question remand back by Comm.(A) u/s 35A(3) of C.E. Act.

Summary

Issues:
1. Interpretation of the powers of the Commissioner (Appeals) to remand cases after the amendment by the Finance Act, 2001.

Analysis:
The judgment by the High Court of Punjab and Haryana addressed the issue of whether the Commissioner (Appeals) retains the power to remand cases following the specific amendment introduced by the Finance Act, 2001. The Court considered the appeals filed by the revenue under Section 35G of the Central Excise Act, 1944 against the orders of the Customs Excise & Service Tax Appellate Tribunal. The primary question raised was whether the Commissioner (Appeals) could remand cases back to the adjudicating authority post the amendment in 2001. The Court referred to a previous Division Bench judgment in a similar case, where it was held that the power of remand was explicitly withdrawn by the Finance Act, 2001, and the Commissioner (Appeals) no longer possessed the authority to remand cases.

The Court emphasized that the amendment in Section 35A(3) of the Act mirrored the changes made in Section 128A(3) of the Customs Act, 1962. The comparison of the provisions before and after the amendment highlighted the removal of the specific power of remand from the Commissioner (Appeals). The judgment further reiterated that the legislative intent behind the amendment was clear, and the power of remand was intentionally excluded from the authority of the Commissioner (Appeals). The Court dismissed the argument presented by the assessee-respondent regarding the retention of remand powers by the Commissioner (Appeals) post the amendment, citing the precedent set by the Division Bench in a previous case.

Additionally, the Court distinguished a judgment by the Gujarat High Court and a Supreme Court case cited by the assessee-respondent, asserting that the circumstances in those cases were different from the present scenario where the power of remand was specifically removed by the amendment. The Court concluded that the appeals filed by the revenue were valid, setting aside the orders of the Tribunal and the Commissioner (Appeals), directing the matters to be reconsidered by the Commissioner (Appeals) within a stipulated timeframe. The judgment highlighted the importance of adhering to the legislative amendments and the clear intention of the legislature in limiting the powers of the Commissioner (Appeals) regarding remand decisions.

In summary, the High Court's judgment provided a detailed analysis of the legislative amendments and previous case law to determine the scope of the Commissioner (Appeals)'s authority in remanding cases post the amendment introduced by the Finance Act, 2001. The decision underscored the significance of interpreting statutory provisions in alignment with legislative intent and upheld that the Commissioner (Appeals) no longer possessed the power to remand cases following the specific legislative changes.