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TMI Blog2015 (2) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the investigation which included statements of various individuals recorded. It also included several receipts, copies of ledgers, books etc. As to whether it was completely unfeasible for him to attribute production figures based on such seized materials is something which this Court can only speculate on, but not determine through any finding. Undoubtedly, the show cause notice was issued in a composite manner to both the parties. However, in our opinion, that ipso facto did not vitiate the proceedings. If at the stage of determination of liability or at the final stage, it was open to the Commissioner to ascribe one figure or the other, to each of the parties, that course ought to have been adopted. To that extent, the submission of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Petitioner : Mr. Satish Kumar, Sr. Standing Counsel with Ms. Shruti Yadav, Advocate. For the Respondent : Mr. C. Hari Shanker, Sr. Advocate with Mr. Saket Sikri and Mr. Jagdish N., Advocates. ORDER S. Ravindra Bhat, J. (Open Court) C.M. No.7917/2014 (for condonation of delay) For the reasons mentioned in the application, the application stands allowed. C.M. Nos.7916/2014 (for restoration of appeal) For the reasons mentioned in the application, the application stands allowed. Appeal stands restored to the file of this Court. CEAC 3/2006 1. The following questions of law were framed at the stage of admission: - 1. Whether the Commissioner of Central Excise, Delhi-I had territorial jurisdiction to issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se and Service Tax Appellate Tribunal (CESTAT) which, by the impugned order, held firstly that the show cause notice could not have been issued against FEIL, given that it fell within the jurisdiction of the Central Excise Commissioner, Delhi-II, Delhi, whereas the Commissioner of Central Excise, Delhi-I had issued show cause notice. In respect of both, it was held secondly, that without attributing the actual removals and consequently working out the duty liability, the Commissioner could not have on a derivative or deductive basis that is premised upon the proportion of past production records, imposed duty liability in respect of each unit. The Commissioner was influenced by the fact that the proportion of production figures available wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned counsel fairly submitted that the question is somewhat but not wholly addressed by Section 38A of the Central Excise Act - which was inserted by Act 40 of 2001 - though with retrospective effect. While undoubtedly FEIL s premises was searched at a time when, there was only one Commissionerate, yet show cause notice was issued by the Commissioner who did not possess jurisdiction in the light of the notification No.14/2002-CE(NT). Contending that Section 38A clearly envisioned different stages of action such as investigation or legal proceedings, the culmination of which would logically result in different conclusion, learned counsel urged that this Court ought not to disturb the findings of the CESTAT on the question of absence of juri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilable in law, for this purpose, of course after giving due opportunity to both the parties. 8. So far as the question of jurisdiction is concerned, this Court is of the opinion that Section 38A takes care of the situation completely. It has the effect of saving investigations, legal proceedings etc. The respondent s submissions that upon the issuance of Notification in 2002, legality of investigations stood protected but upon the ceasing of such proceedings, the appropriate Commissioner necessarily had to exercise jurisdiction is textual and narrow. This Court has to be alive to the fact that the provision was brought with retrospective effect, keeping in mind the larger public interest to avoid precisely the kind of contentions that we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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