1990 (3) TMI 205 - AT - Central Excise

Summary

Issues: Jurisdiction of the Bench, Applicability of Section 35D(2) of the Central Excises and Salt Act, 1944

In the case of M/s. Calcutta Fabricating Co. Private Ltd. appealing against a penalty imposed for not possessing a required license, the main issues revolved around the jurisdiction of the bench and the applicability of Section 35D(2) of the Central Excises and Salt Act, 1944.

The appeal raised by M/s. Calcutta Fabricating Co. Private Ltd. challenged the penalty imposed by the Collector of Central Excise, Calcutta-I for not possessing an L-4 license during the year 1979-80. The appellant argued that a case had already been adjudicated against them by the Divisional Assistant Collector and that the jurisdiction of the Collector of Central Excise, Calcutta-I was not appropriate as their factory fell under the jurisdiction of Calcutta-II Collectorate.

The Departmental Representative did not dispute the points raised by the appellant regarding the previous adjudication and jurisdictional issues. However, the Representative contended that all appeals related to the impugned order, which primarily focused on valuation issues, should be heard by a Special Bench due to the common nature of the proceedings involving multiple parties.

The Tribunal analyzed the matter, considering the provisions of Section 35D(2) of the Central Excises and Salt Act, 1944. The Tribunal interpreted that appeals related to decisions or orders concerning the determination of questions regarding excise duty rates or goods' valuation should be heard by a Special Bench. In this case, although a penalty was imposed on the appellant for a licensing irregularity, the primary focus of the order was on valuation issues. Therefore, the Tribunal decided that the appeal should be transferred to the Customs, Excise and Gold (Control) Appellate Tribunal in New Delhi for disposal by the concerned Special Bench, based on the interpretation of the relevant legal provisions.

In conclusion, the Tribunal directed the transfer of the appeal to the Special Bench based on the interpretation of Section 35D(2) of the Central Excises and Salt Act, 1944, which mandates that appeals related to questions of excise duty rates or goods' valuation should be heard by a Special Bench, even if other issues are decided in the same order.