2018 (9) TMI 730 - AT - Central Excise

Rectification of Mistake - Time Limitation - Held that - The entire order considers the issue on merits in detail. It is also a fact that the appellant had claimed that the show cause notice is hit by limitation and had taken grounds before the lower authorities as also before the Tribunal. It is apparent on the face of the records that the Bench has not passed any order on the limitation issue - the Final Order dated 15.09.2017 needs recall - application of ROM disposed off.

Summary

Issues: Rectification of mistake in Final Order regarding limitation on demand of duty.

In this case, the main issue revolves around the rectification of a mistake in the Final Order dated 15.09.2017 concerning the limitation on the demand of duty. The appellant had argued that the entire demand was hit by limitation, referencing the show cause notice issued on 08.03.2012 for the period of September 2008 to March 2009. The appellant's argument on limitation was not addressed in the Final Order, prompting the need for rectification. The Bench acknowledged that the issue of limitation was not addressed and decided to recall the Final Order to reconsider the matter. The Final Order dated 15.09.2017 was recalled, and the appeal was restored for further consideration specifically on the limitation issue, with a direction to list the matter for hearing on 27.08.2018.

The appellant's counsel highlighted the error in the Final Order where the argument on limitation was not considered, despite being raised in the grounds of appeal and submissions before the lower authorities. The appellant contended that if the argument on limitation was accepted, there would be no demand of duty. Reference was made to a similar issue decided by the Bench in a previous case involving Krishnapatnam Oils and Fats Pvt Ltd. The Tribunal acknowledged the oversight in not addressing the limitation issue and decided to recall the Final Order for reconsideration to rectify the mistake.

The Departmental Representative opposed the rectification, arguing that the appellant was attempting to re-argue the entire case under the guise of rectifying a mistake, contrary to the provisions of Section 35C of the Central Excise Act, 1944. Reference was made to a judgment by the Hon'ble High Court of Karnataka in the case of Mc Dowell & Co. Ltd [2015 (329) ELT 6]. However, the Tribunal, after careful consideration of the submissions and perusal of the Final Order, found that the limitation issue was indeed not addressed in the original order. Consequently, the Tribunal decided to recall the Final Order to allow for a proper consideration of the limitation aspect, thereby disposing of the application for rectification of mistake.