2003 (9) TMI 107 - HC - Central Excise

Summary

Issues Involved:
Jurisdiction of the Tribunal to pass orders on rectification of mistake under Rule 41 of the Customs, Excise and Gold (Control) Appellate Tribunal (Procedure) Rules, 1982.

Analysis:

1. Issue: Jurisdiction of the Tribunal for rectification of mistake
The petitioner approached the Tribunal seeking rectification of an order dated 30-7-1996, which was based on a previous order related to a different notification. The Tribunal, in Misc. Order No. 339 of 2001, expressed helplessness in considering the rectification, citing lack of jurisdiction to pass orders on rectification of mistake. However, the petitioner argued that the Tribunal has inherent jurisdiction to correct palpably erroneous orders passed under misapprehension, especially when the error is one of law and apparent on the face of the record. Reference was made to a Division Bench judgment of the Gujarat High Court and Supreme Court judgments supporting the Tribunal's inherent powers under Rule 41.

2. Analysis of the Judgment
The High Court held that the Tribunal's reliance on a Larger Bench decision to deny jurisdiction for rectification was incorrect. The Court emphasized that the Tribunal should have followed the Supreme Court's rulings and exercised its inherent powers under Rule 41 to consider the rectification application. The Court directed the first respondent to consider the petitioner's rectification application filed on 22-7-2000 on merits and pass appropriate orders in accordance with the law. Consequently, the writ petition was disposed of with the above direction, and no costs were awarded. WPMP No. 66901 of 2002 was closed as a result of the judgment.

In conclusion, the High Court's judgment clarified the Tribunal's jurisdiction to rectify mistakes in its orders, emphasizing the Tribunal's inherent powers under Rule 41. The judgment highlighted the importance of following legal precedents and exercising such powers when errors of law are evident.