1986 (11) TMI 257 - AT - Central Excise

Summary

Issues:
- Appeal against Order-in-Appeal No. 549-551/CE/MRT/84
- Alleged clandestine removal of molasses
- Dispute over losses and duty demanded
- Jurisdiction of the Tribunal under the Central Excises and Salt Act, 1944

Analysis:

1. Appeal against Order-in-Appeal No. 549-551/CE/MRT/84:
The appellant filed an appeal against the Order-in-Appeal No. 549-551/CE/MRT/84, which disposed of three separate appeals regarding alleged clandestine removal of molasses during three sugar seasons. The Adjudicating Authority found the respondents guilty of contravening Central Excise Rules and demanded duty, which the respondents challenged in their appeals. The Collector (Appeals) allowed the appeals, setting aside the original orders. Dissatisfied with this decision, the Department filed the present appeals.

2. Alleged Clandestine Removal of Molasses:
The respondents were accused of clandestine removal of molasses during three sugar seasons. Show Cause Notices were issued, and the Adjudicating Authority held them guilty of contravening Central Excise Rules, demanding duty and imposing penalties. The Collector (Appeals) later reversed this decision, attributing the losses to natural causes or circumstances beyond the respondents' control. This led to the Department filing the present appeals against the Collector's decision.

3. Dispute Over Losses and Duty Demanded:
The main issue revolved around the losses incurred and the duty demanded by the Adjudicating Authority. While the Authority held the respondents accountable for the losses and demanded duty, the Collector (Appeals) disagreed, attributing the losses to external factors beyond the respondents' control. This disagreement formed the basis for the appeals and counter-objections filed by both parties.

4. Jurisdiction of the Tribunal under the Central Excises and Salt Act, 1944:
During the hearing, a preliminary objection was raised regarding the jurisdiction of the Tribunal under the Central Excises and Salt Act, 1944. The respondents argued that the appeals should be filed before the Government of India due to an amendment in the Act. Citing a previous case, the Tribunal upheld the objection, stating that the proper forum to entertain such appeals is the Central Government as per the Act. Consequently, the Tribunal directed the appeal papers and cross-objections to be returned for proper presentation before the competent authority.

In conclusion, the judgment highlighted the issues surrounding the appeal against the Order-in-Appeal, the allegations of clandestine removal of molasses, the dispute over losses and duty demanded, and the jurisdiction of the Tribunal under the Central Excises and Salt Act, 1944. The decision emphasized the need to adhere to the legal provisions and directed the parties to present their appeals before the appropriate authority in line with the Act's amendments.