2016 (8) TMI 544 - HC - Central Excise

Validity of impugned order - passed by the Revisionary Authority - officer was of the same rank as is the appellate authority - Held that - the impugned order was passed by the Joint Secretary to Government of India who was also Commissioner of Central Excise and Customs. For the detailed reason that the order in appeal as well as revisionary order had been passed by the officers of the same rank is not permissible as per law. Hence, the impugned order dated 3.3.2011, passed by the Revisionary Authority is set aside, however, with liberty to the revenue to proceed afresh in accordance with law. - Writ petition disposed of

Summary

Issues:
Challenge to order rejecting revision against order in appeal, Revisionary Authority's rank in relation to appellate authority.

Analysis:
The petitioner challenged the order rejecting the revision against the order in appeal, which had set aside the refund sanctioned by the adjudicating authority. The petitioner argued that the Revisionary Authority must be of a higher rank than the appellate authority. The court referred to a Division Bench judgment and held that revision by an officer of the same rank as the appellate authority is impermissible.

In the case of M/s Prakash Pipes Industries Limited, the court had previously held that revision by an officer of the same rank is not allowed. The respondents cited judgments from Delhi High Court and the Supreme Court, but the court emphasized that those decisions were based on different factual situations. In this case, the impugned order was passed by officers of the same rank, which is not permissible under the law.

The court allowed the petitions, setting aside the impugned orders and granting liberty to the State to proceed afresh in accordance with the law. The court's decision was based on the principle that the Revisionary Authority must be of a higher rank than the appellate authority. The court highlighted that the respondents could not benefit from previous judgments as they were not applicable to the current case.

Therefore, the court set aside the impugned order passed by the Revisionary Authority, allowing the revenue to proceed afresh in compliance with the law. The writ petition was disposed of accordingly, emphasizing the importance of the Revisionary Authority's rank in relation to the appellate authority.