2009 (12) TMI 277 - AT - Central Excise

Rectification of mistake-Tribunal order stated as passed without considering relevant judgment of Supreme Court. Impugned order pronounced by Tribunal on 27.08.2008 while by Supreme Court on 29.09.2008. mistake not committed by Tribunal as overlooking such decision not arises. Tribunal larger bench ruling in 2006(202) E.L.T. 177 (Tribunal-LB) holding order rectifiable based on Apex Court ruling when contrary view taken by subordinate authorities, not applicable. Order issued prior to pronouncement of decision by Supreme Court cannot be modified by rectification. Appropriate remedy to be sought in such case. Application rejected.

Summary

Issues:
Rectification of order based on subsequent Supreme Court judgments regarding quantum of penalty.

Analysis:
The case involves an application for rectification of an order dated August 27, 2008, passed in an Excise Appeal. The applicant contended that the Tribunal failed to consider certain Supreme Court decisions while deciding on the quantum of penalty. The Tribunal pronounced its order before the Supreme Court judgments were available, so it cannot be said that any mistake was made or that the Tribunal overlooked the Supreme Court decisions. The Department argued that once the Supreme Court decides a point of law, it is binding on all subordinate judicial authorities, and any decision contrary to the Supreme Court's ruling can be rectified. The Tribunal cited a case where it was held that decisions of the Supreme Court are binding, and any contrary decision can be rectified. However, it was emphasized that orders issued before Supreme Court pronouncements cannot be rectified; instead, the aggrieved party should follow the appropriate legal steps.

The Tribunal concluded that in this case, there was no ground for rectifying the order as the decision was made before the Supreme Court judgments were available. Therefore, the application for rectification was rejected.