2009 (2) TMI 438 - AT - Central Excise

Summary

Issues involved: Remand of matter back to Original Adjudicating Authority, violation of principles of natural justice, cross-examination of witnesses, appeal against decision to remand.

The Appellate Tribunal CESTAT, AHMEDABAD, in the case, dealt with the issue of remanding the matter back to the Original Adjudicating Authority. The Commissioner (Appeals) remanded the case due to the fact that the show cause notice was an offshoot of the main notice alleging wrongful Cenvat credit availed by the appellants. The Commissioner had adjudicated the main issue previously, and the Tribunal remanded the matter back to the Commissioner for violating principles of natural justice. As the appellants sought cross-examination of the same witnesses, the Commissioner (Appeals) followed the Tribunal's order and remanded the matter. The Revenue appealed against this decision, arguing that the Commissioner should have decided the case on merits.

In the judgment, it was noted that the Commissioner had passed an order on the main issue on 14-12-07, while the show cause notice regarding seized goods was adjudicated by the Joint Commissioner. Referring to Circular No. 752/68/2003-CX, the Tribunal highlighted that all show cause notices on the same issue should be adjudicated by the authority competent to decide cases involving the highest duty amount. Since the Tribunal had already set aside the Commissioner's order and remanded it for fresh adjudication, it was deemed appropriate to set aside the impugned order and remand the matter to the Commissioner for fresh adjudication in line with the principles of natural justice as per the circular issued by the Board. Consequently, both show cause notices were to be adjudicated by the Commissioner afresh, aligning with the circular's directives. The appeal filed by the Revenue was disposed of accordingly.

*(Pronounced in Court on 4-2-2009)*