1980 (3) TMI 93 - CGOVT - Central Excise

Summary

Issues:
1. Challenge to the validity of proceedings initiated by the Collector of Central Excise.
2. Power of the Collector to re-adjudicate the case without a specific direction of remand by the Board.
3. Interpretation of previous court judgments in similar cases.
4. Application of the principle of natural justice in re-adjudication of the case.

Detailed Analysis:
1. The petitioner challenged the validity of proceedings initiated by the Collector of Central Excise, Bombay, following the Board's order-in-appeal vacating the Collector's original order. The petitioner contended that the Collector had no power to re-adjudicate the case without a specific direction of remand by the Board. The Board rejected this plea, leading to the revision application by the petitioner.

2. During the hearing, the petitioner's counsel referenced judgments from the Madras High Court and the Gujarat High Court. However, the government agreed with the Board's finding that these judgments were not applicable to the present case. Reference was made to a Gujarat High Court decision in another case, emphasizing that a remand or de novo inquiry can be implied even without an express direction, as long as the intention is clear from the order.

3. The government highlighted that the intention of the Central Board of Revenue in vacating the Collector's order was to ensure that the proceedings were not terminated but rather continued to be decided on their merits. The judgment in the Wintex Mills case clarified that the words "without prejudice to the merits of the case" indicated a clear intention to allow further inquiry into the charges against the petitioner.

4. Ultimately, the government concluded that the Collector's decision to re-adjudicate the case after complying with the principles of natural justice, as confirmed by the Board, was legally correct. The application for revision was therefore rejected based on the interpretation of previous judgments and the application of the principle of natural justice in the re-adjudication process.