2001 (5) TMI 462 - AT - Central Excise

Summary

Issues:
1. Nature of furnace - batch type or pusher type
2. Adjudication of four show cause notices

Analysis:

Issue 1: Nature of furnace - batch type or pusher type
The appeal raised a significant issue regarding the nature of the furnace at M/s. Shree Laxmi Iron & Steel Re-rolling Mills, specifically whether it was a batch type or a pusher type. The Tribunal had previously remanded the matter with instructions for a personal visit to the factory premises by the adjudicating authority along with technical experts to make an informed decision. Following this visit and consideration of the principles of natural justice, the adjudicating authority determined that the furnace was a pusher type under the Hot Re-rolling Steel Mills Annual Capacity Determination Rules, 1997. The appellant's counsel contended that there was a distinction between pusher type and batch type furnaces and raised concerns about the lack of opportunity for a personal hearing in the present adjudication order. However, the Tribunal, after reviewing the facts and expert opinions, upheld the adjudicating authority's decision regarding the nature of the furnace, confirming the fixation of the annual capacity and duty demand related to it.

Issue 2: Adjudication of four show cause notices
The second issue revolved around the adjudication of four show cause notices dated 29-10-1998, 29-10-1998, 16-4-1999, and 7-10-1999. The adjudicating authority had disposed of these notices in an order dated 29-10-1999 without providing the appellants with an opportunity to respond or a personal hearing. The Tribunal found that the principles of natural justice were not fully adhered to in this aspect. Therefore, the Tribunal remanded this specific part of the matter back to the jurisdictional authorities for a fresh consideration. The appellants were directed to reply to the show cause notices, and the authorities were instructed to pass a speaking appealable order after hearing the appellants. As a result, the appeal was partly allowed on this ground, and the matter was remanded for further proceedings in accordance with the observations made by the Tribunal.

In conclusion, the judgment addressed the issues related to the nature of the furnace and the adjudication of show cause notices, ensuring that the principles of natural justice were upheld in the legal proceedings.