1990 (8) TMI 261 - AT - Central Excise

Summary

Issues:
Validity of the order in appeal challenging time bar aspect.

Analysis:
The appeal was filed by the Collector of Central Excise, Calcutta-1, contesting the order in appeal passed by the Collector of Central Excise (Appeals), Calcutta, which favored M/s. Fastener Manufacturers Pvt. Ltd. The Collector (Appeals) found the notice dated 6-10-1986, related to duty recovery for 1-3-1986 to 31-3-1986, to be time-barred. However, the respondent claimed the notice was received on 10th October 1986, within the six-month limit from their submission of RT 12 return on 7-4-1986. Evidence presented indicated the notice was served within the time limit, leading to the appeal being allowed.

The respondent submitted a cross objection against the department's appeal, received in time by the Registry. The cross objection sought to reject the Collector's appeal or modify the order in appeal on merits. Reference was made to a departmental clarification regarding the retrospective application of certain notifications, indicating a lack of retrospective effect for Notification No. 213/86 from 1-3-86. The Collector's argument regarding the applicability of Notification No. 77/85 was deemed unsupported by reasons, leading to a failure to meet the principles of natural justice.

The judgment highlighted the necessity for quasi-judicial orders to be supported by reasons, citing a Supreme Court case emphasizing the importance of recording reasons in such orders. Due to the Collector (Appeals) failing to provide reasons for the decision on merits, the order was set aside for not meeting the principles of natural justice. Both the appeal and the cross objection were allowed, setting aside the order on the time bar aspect and the decision on merits. The matter was remanded to the Collector (Appeals) for a fresh decision on merits, ensuring compliance with natural justice principles and considering the eligibility for exemption notifications during March 1986.