1989 (7) TMI 199 - AT - Central Excise

Summary

Issues:
1. Transfer of review proceedings as an appeal before the Tribunal.
2. Preliminary objection regarding dropped review proceedings and limitation.
3. Disallowance of deductions in the assessable value.
4. Finality of the order dated 6-9-1978.
5. Communication of the order as a requirement for finality.

Analysis:
1. The case involved the transfer of review proceedings initiated by the Central Government under Section 36(2) of the Central Excises and Salt Act, 1944 to the Tribunal as an appeal under Section 35-P(2) of the same Act.

2. The respondents raised a preliminary objection stating that the review proceedings were dropped by the Government of India, and thus, the appeal before the Tribunal was not maintainable. Additionally, they argued that the review proceedings were barred by limitation. The Tribunal reserved orders after hearing both parties on this preliminary objection.

3. The dispute centered around the disallowance of deductions in the assessable value by the Assistant Collector of Central Excise, Meerut. The Appellate Collector of Central Excise, New Delhi set aside the Assistant Collector's order, stating that the charges claimed as deductions were actually incurred and realized by the appellants from dealers in non-franchise areas. The Central Government issued a show cause notice to include these charges in the assessable value, which the respondents contested based on legal decisions and the dropped review proceedings.

4. The main issue for determination was whether the order dated 6-9-1978, passed by the Review Bench of the Central Government, was final and conclusive or remained a draft due to non-communication.

5. The Tribunal, citing legal precedents, held that the order passed by the Review Bench was final and conclusive, even in the absence of communication. Referring to the necessity of communication for an order to become effective, the Tribunal emphasized that the order was validly passed and duly signed after hearing the party, making communication an administrative act that did not affect the validity of the order. Therefore, the appeal was dismissed based on the finality of the order dated 6-9-1978.

In conclusion, the Tribunal dismissed the appeal, ruling that the order dated 6-9-1978 by the Review Bench was final and conclusive, and the non-communication of the order did not impact its validity.