2000 (3) TMI 715 - AT - Central Excise

Issues:
1. Non-granting of personal hearing and non-compliance with Tribunal's direction by Commissioner (Appeals).
2. Dispute on the sums to be deducted and Modvat credit availment.
3. Alleged financial hardship faced by the appellants.
4. Commissioner (Appeals) dismissing the appeal under Section 35F.
5. Request for expunging remarks against Commissioner (Appeals).
6. Violation of principles of natural justice.

Analysis:

1. The Tribunal addressed the issue of non-granting of personal hearing and non-compliance with its direction by the Commissioner (Appeals). The Tribunal had previously remanded the matter to the Commissioner, emphasizing that the Apex Court's judgment was not applicable to proceedings under the Central Excise Act. Despite reminders and multiple opportunities, the Commissioner disregarded the Tribunal's direction, leading to a clear violation. Consequently, the Tribunal set aside the impugned order due to the Commissioner's failure to follow the Tribunal's direction.

2. Regarding the dispute on the sums to be deducted and Modvat credit availment, the appellants argued for deductions under Section 4(4)(d)(ii) of the Act and highlighted their financial hardship. The Tribunal noted that the Commissioner did not consider the appellants' pleas for deductions and Modvat credit, which could significantly reduce the duty amount. The appellants offered to pre-deposit Rs. 2 lakhs. The Tribunal acknowledged the appellants' defense on these aspects and remanded the matter to the Commissioner for a decision on the merits after the pre-deposit.

3. The Tribunal considered the alleged financial hardship faced by the appellants and the impact of the deductions and Modvat credit on the duty amount. The appellants' readiness to offer a pre-deposit indicated their willingness to comply with the legal requirements while emphasizing their financial constraints. The Tribunal's decision to allow the pre-deposit and proceed with the appeal demonstrated a balanced approach to address the financial concerns raised by the appellants.

4. The Commissioner (Appeals) had dismissed the appeal under Section 35F, prompting a review by the Tribunal. The Tribunal found that the Commissioner's dismissal did not consider the appellants' arguments regarding deductions and Modvat credit, indicating a violation of natural justice principles. By remanding the matter and directing the Commissioner to decide on the merits, the Tribunal rectified the procedural shortcomings in the Commissioner's decision.

5. The request for expunging remarks against the Commissioner (Appeals) was considered by the Tribunal. The Commissioner argued for a lenient view based on his understanding of the Apex Court's position. However, the Tribunal emphasized its analysis of Section 35A and the Commissioner's obligation to adhere to the Tribunal's decisions. The Tribunal maintained that the Commissioner should have followed the judicial discipline of the Tribunal and addressed any grievances through proper channels.

6. The Tribunal identified a violation of principles of natural justice due to the Commissioner's failure to consider the appellants' defense related to deductions and Modvat credit. By not addressing these crucial aspects, the Commissioner's decision lacked adherence to the principles of natural justice. The Tribunal's decision to remand the matter and allow the pre-deposit aimed to rectify these procedural deficiencies and ensure a fair consideration of the appellants' arguments.

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