1998 (8) TMI 170 - AT - Central Excise

Summary

Issues:
Rectification of mistake on the face of the record regarding the reversal of Modvat credit for the value of empty drums.

Analysis:
The judgment pertains to an application for rectification of a mistake in Final Order No. E/3/94, dated 22-12-1993, concerning the reversal of Modvat credit for the value of empty drums. The appellant contended that two mistakes were apparent in the order. Firstly, the failure to consider a relevant case law from the West Regional Bench of the Tribunal at Bombay, and secondly, the order went beyond the scope of the show cause notice by deeming the empty drums as scrap and imposing duty on them under Rule 57F(4). The appellant argued that this issue was not raised in the show cause notice, thus constituting a mistake.

The respondent argued that the case law from M/s. IOL was submitted after the hearing was over and before the order was pronounced, suggesting that it was not necessary for the Tribunal to consider this additional argument. However, the Tribunal disagreed, stating that the matter remains open for consideration until the order is pronounced. Moreover, upon reviewing the show cause notice, it was evident that the issue of treating the empty drums as scrap and imposing duty was not raised directly or indirectly, supporting the appellant's contention of a mistake on the face of the record.

The Tribunal concluded that the decision of the West Regional Bench in the case of M/s. IOL should have been considered, as it was a precedential Court. Since the order did not address this case law or the issue of dutiability of the drums as scrap, and it extended beyond the scope of the show cause notice, the order was deemed to contain mistakes. Consequently, the Tribunal found merit in the appellant's contentions and ordered the reconsideration of the order as per the law. The appeal was scheduled for a rehearing on a specified date.