1998 (2) TMI 198 - AT - Central Excise

Summary

Issues:
1. Interpretation of Section 35E(3) of the Central Excise Act regarding the time limitation for passing review orders.
2. Determination of the date from which the one-year period for review orders should be calculated.
3. Application of the Supreme Court judgment in C.C.E. v. M.M. Rubber Co. to the present case.
4. Decision on whether the review order in the case is time-barred.

Analysis:
1. The appeal concerns the classification of epoxy powder coatings under the Central Excise Tariff. The primary issue raised is the timeliness of the review order passed by the Collector of Central Excise (Appeals) after the expiry of one year from the date of the original order by the Assistant Collector. The appellant argues that the review order is barred by Section 35E(3) of the Central Excise Act, which prohibits orders after the one-year period. The lower appellate authority rejected the appellant's claim that the statutory period was six months, leading to the current dispute.

2. The date of the Assistant Collector's order, which is the starting point for calculating the one-year period for review orders, is crucial in this case. The appellant asserts that the Assistant Collector's order was dated 26-6-1985, making the review order passed on 16-7-1986 beyond the statutory limitation. The Tribunal concurs with this assessment, citing the Apex Court judgment in CCE v. M.M. Rubber, which emphasizes the importance of adhering to the prescribed time limits for review orders.

3. Referring to the Supreme Court's interpretation of Section 35E of the Act, the Tribunal emphasizes that the authority must exercise its power within the specified limitation period from the date of the order under review. The judgment underscores the significance of the date when the order becomes effective, rather than the date of communication to the affected party. This interpretation guides the Tribunal's decision to set aside the impugned order due to being time-barred.

4. Both members of the Tribunal concur that the review order in question is indeed time-barred under Section 35E(3) of the Central Excise Act. They reject the department's argument that the date of issue of the order should be considered, emphasizing the importance of the date when the order becomes effective. Consequently, the Tribunal sets aside the impugned order and allows the appeal without delving into the merits of the case, as the primary issue of timeliness has been resolved conclusively.