2019 (9) TMI 835 - HC - Central Excise

Rejection of Rectification Application - Valuation of free physician samples - time limitation - HELD THAT - On perusal of the impugned order, we find that the grievance of the Petitioner that it is entirely unreasoned, is justified - In the Rectification application the Petitioner has stated that the ground of limitation was taken up in the Appeal Memo and Written submission but has not been considered. The impugned order dated 20 November 2018 passed by the Tribunal is set aside. The Rectification application stands restored to the file of the Tribunal to be decided as per law - Petition allowed.

Summary

Issues:
Challenge to order of Customs, Excise and Service Tax Appellate Tribunal Mumbai rejecting Rectification application.

Analysis:
The Petitioner, engaged in medicine manufacturing, faced a challenge regarding duty payment on physician samples distributed to doctors for free. The Preventive Wing of Commissioner of Central Excise alleged duty evasion by the Petitioner, leading to a show cause notice, demand confirmation, and penalty imposition. Despite appeals to the Commissioner (Appeals) and the Tribunal, the matter remained unresolved. Subsequently, a Rectification application was filed by the Petitioner, contending that the Tribunal did not address the limitation defense raised. The impugned order dismissing the Rectification application was found to lack reasoning by the High Court.

Upon review, the High Court noted the lack of justification in the impugned order and set it aside. The High Court allowed the Writ Petition, restoring the Rectification application to the Tribunal for proper consideration in accordance with the law. It was clarified that the decision to remand the application did not reflect on the merits of the Petitioner's case, emphasizing the procedural aspect of the remand. Ultimately, the Writ Petition was disposed of in favor of the Petitioner, highlighting the need for a fair review of the Rectification application by the Tribunal.