2020 (11) TMI 623 - AT - Central Excise

Maintainability of appeal - non-compliance with the requirement of pre-deposit - section 35F of the Central Excise Act, 1944 - HELD THAT - The learned Commissioner(Appeals) has not decided the case on merits, but has dismissed the appeal on the ground of non-compliance with the provisions of section 35F of the Central Excise Act, 1944. After filing appeal before the Tribunal, the appellant has deposited an amount of ₹ 10,00,000/-, which is sufficient to hear their appeal on merits. The appeal filed by the appellant is allowed by way of remand to learned Commissioner(Appeals) for deciding the case on merits, without insisting on any further pre-deposit - Appeal allowed by way of remand.

Summary

Issues:
Appeal dismissed on noncompliance with section 35F of Central Excise Act, 1944.

Analysis:
The appellant's appeal was dismissed by the learned Commissioner(Appeals) solely due to noncompliance with the provisions of section 35F of the Central Excise Act, 1944, without delving into the merits of the case. Subsequently, the appellant approached the Tribunal, depositing an amount of ?10,00,000 as a prerequisite for the appeal to be heard. The Tribunal noted that the Commissioner(Appeals) did not address the case on its merits but dismissed it on procedural grounds. The Tribunal found the deposited amount to be adequate for the appeal to be heard on its merits. Consequently, the Tribunal allowed the appeal by remanding the case back to the Commissioner(Appeals) for a decision on the merits, without requiring any additional predeposit. The appellant was to be granted a fair hearing, and both parties were permitted to present evidence in their favor. The Tribunal emphasized that all issues were to be reconsidered, keeping them open for further examination.

This judgment highlights the significance of compliance with procedural requirements, specifically section 35F of the Central Excise Act, 1944, while also underscoring the right to a fair hearing and the opportunity to present evidence in a legal proceeding. The Tribunal's decision to remand the case for a fresh consideration on merits showcases the importance of addressing substantive issues rather than dismissing appeals solely on procedural grounds. The ruling ensures that the appellant is granted a reasonable opportunity to present their case and have it adjudicated based on its merits, fostering fairness and justice in the legal process.