2014 (2) TMI 917 - AT - Central Excise

Rectification - Corrigendum replacing the entire findings - Held that - adjudicating authority becomes functus officio, as soon as he passes the Order-in-Original and corrigendum, if any, at the most can be for correcting the factual errors. It is an admitted fact by both sides that the corrigendum issued by the Commissioner of Central Excise, Surat-I has replaced the entire findings of the Order-in-Original Nos. 31-35/demand/2012, it is so; the same seems to be inconsistent with law - At the same time to meet ends of justice; as requested by both sides, we direct the adjudicating authority to reconsider the issue afresh after following the principle of natural justice - Decided in favour of assessee.

Summary

Issues:
Appeals against the same Order-in-Original; Corrigendum replacing findings; Jurisdiction of adjudicating authority; Principle of natural justice.

Analysis:
The judgment by the Appellate Tribunal CESTAT Ahmedabad dealt with two appeals challenging the same Order-in-Original. Both the appellant and the Department had filed appeals against the said order. The Tribunal considered the issue of a corrigendum issued by the Commissioner of Central Excise, Surat-I, which had replaced the entire findings of the original order. During the hearing, it was noted that the adjudicating authority becomes functus officio upon passing the Order-in-Original, and any corrigendum should only correct factual errors. The Tribunal found that the corrigendum replacing the entire findings of the original order was inconsistent with the law. Consequently, the Tribunal set aside both the corrigendum and the Order-in-Original. However, to ensure justice, the Tribunal directed the adjudicating authority to reconsider the issue afresh, emphasizing the importance of following the principle of natural justice. It was explicitly mentioned that the Tribunal had not expressed any views on the merits of the case and had left all issues open for reconsideration by the adjudicating authority. The appeals were allowed by way of remand to the adjudicating authority for a fresh review.

This judgment raises the issue of the jurisdiction and limitations of the adjudicating authority once an Order-in-Original has been passed. It clarifies that the authority becomes functus officio after issuing the original order, and any subsequent corrigendum should only aim to correct factual errors, not replace entire findings. The judgment emphasizes the need for adherence to the principle of natural justice in reconsidering issues, highlighting the importance of fair procedures in administrative decision-making. By setting aside the corrigendum and the original order, the Tribunal ensures that the matter is reviewed afresh with all issues left open for further examination, maintaining fairness and procedural integrity in the adjudication process.