2000 (3) TMI 464 - AT - Central Excise

Summary

Issues:
1. Rectification of mistake apparent on the face of the record in Final Order.
2. Applicability of Section 11A of the Central Excises and Salt Act, 1944 to Rule 196 of the Central Excise Rules.
3. Alleged mistake in the Final Order regarding the reliance on an Allahabad High Court judgment.
4. Modification of the Final Order based on the applicability of the Allahabad High Court judgment.
5. Reduction of penalty based on the revised duty liability.

Analysis:
1. The judgment pertains to a case where the appellants filed an application against Final Order No. A/1204/97-DB for rectification of a mistake apparent on the face of the record. The Tribunal directed the recall of the Final Order for hearing the rectification application, which was subsequently listed for a hearing on a specified date.

2. The counsel for the appellants argued that the Final Order had erroneously overlooked the reliance placed on an Allahabad High Court judgment regarding the applicability of Section 11A of the Act to Rule 196. The High Court judgment stated that a show cause notice issued beyond six months without allegations of misstatement or suppression of facts would be time-barred. The counsel contended that the Final Order needed modification based on this judgment.

3. Upon review, the Tribunal found merit in the counsel's submissions. It noted that the Final Order did not consider the Allahabad High Court judgment's relevance to the case. Consequently, the Tribunal modified the Final Order, emphasizing that the demand was time-barred as per the High Court's ruling. The matter was remanded to the adjudicating authority to reassess the duty liability within the six-month period as prescribed by Section 11A.

4. As a result of the reduced duty liability following the remand, the Tribunal also reduced the penalty imposed to Rs. 10,000. The appeal was allowed by remand, and the ROM application was disposed of accordingly.

In conclusion, the judgment highlights the importance of considering relevant legal precedents and ensuring the correct application of statutory provisions in determining duty liability and penalties in excise matters.