1994 (7) TMI 137 - AT - Central Excise

Summary

Issues:
1. Denial of principles of natural justice in the appeal process.
2. Non-compliance with Section 35F of the Central Excises and Salt Act, 1944.
3. Dismissal of the appeal by the Collector of Central Excise (Appeals) without issuing a notice.

Issue 1: Denial of principles of natural justice in the appeal process:
The appellant filed an appeal before the Collector (Appeals) but did not submit a stay application as required by Section 35F of the Central Excises and Salt Act, 1944. The Collector (Appeals) dismissed the appeal for non-compliance without issuing a notice to the appellant to rectify the defect. The appellant argued that the Collector (Appeals) should have provided an opportunity to rectify the non-compliance before dismissing the appeal. The Tribunal agreed with the appellant, citing a lack of notice before dismissal. The Tribunal set aside the impugned order and remanded the matter to the Collector of Central Excise (Appeals) for proper consideration. The Collector (Appeals) was directed to hear the stay application and dispose of it on merits in accordance with the law. The Tribunal allowed the appeal by way of remand, giving the appellant six weeks to file the stay application if they choose to do so.

Issue 2: Non-compliance with Section 35F of the Central Excises and Salt Act, 1944:
The Collector (Appeals) dismissed the appellant's appeal for failing to file a stay application along with the appeal, as required by Section 35F of the Central Excises and Salt Act, 1944. The appellant had requested an adjournment and mentioned in their letter that they would file the stay application on the date of the hearing. The Tribunal noted that the appellant did not comply with the statutory requirement of filing the stay application along with the appeal. However, the Tribunal emphasized that the Collector (Appeals) should have allowed the appellant an opportunity to rectify the non-compliance before dismissing the appeal outright. The Tribunal's decision to remand the matter was based on the failure to follow the proper procedure outlined in the statute.

Issue 3: Dismissal of the appeal by the Collector of Central Excise (Appeals) without issuing a notice:
The Collector (Appeals) dismissed the appellant's appeal for non-compliance with Section 35F without issuing a notice to the appellant. The appellant argued that they should have been given an opportunity to rectify the defect before the appeal was dismissed. The Tribunal agreed with the appellant's contention and set aside the Collector (Appeals)'s order. The Tribunal directed the Collector (Appeals) to hear the stay application and dispose of it on merits in accordance with the law. The Tribunal emphasized the importance of following the principles of natural justice and giving the appellant a fair opportunity to comply with the statutory requirements before dismissing the appeal.

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