2005 (12) TMI 105 - HC - Central Excise

Summary

Issues involved: Determination of whether the Tribunal erred in holding that the Revenue did not challenge the order of the Commissioner (Appeals) on merits.

Analysis:
The High Court of Judicature of Madhya Pradesh heard an appeal filed by the Union of India and Commissioner, Central Excise and Customs, Indore, under Section 35G of the Central Excise Act, 1944 against a decision of the Customs, Excise & Service Tax Appellate Tribunal. The Tribunal had dismissed the appeal stating that the Revenue did not challenge the findings of the Commissioner (Appeals) on merits, focusing only on the time-barring of the demand under Section 11A of the Central Excise Act. However, the appeal memo filed by the Revenue did challenge the order of the Commissioner (Appeals) on several grounds on merits. The substantial question of law before the High Court was whether the Tribunal's decision was flawed in holding that the Revenue did not challenge the order of the Commissioner (Appeals) on merits. The learned Asstt. Solicitor General highlighted the grounds raised in the appeal memo, emphasizing the legal aspects related to the Central Excise Tariff Act, exemptions, misdeclaration, extended period of limitation, and the intention to evade payment of duty. The High Court observed that the Tribunal overlooked the extensive grounds raised by the Revenue and concluded that the order required a fresh appraisal. Consequently, the High Court allowed the appeal and remanded the case to the Tribunal for a fresh decision, instructing the Tribunal to consider all aspects without being influenced by any previous observations and ruling that there would be no order as to the costs of the appeal.