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2016 (5) TMI 512 - HC - Central ExciseValidity of Tribunal's order - Expand of scope of the appeal - Appellant submitted that Tribunal committed a grave error in expanding the scope of the appeal. The Department never served copy of the show cause notice to the appellant company and there was no proposal under the show cause notice of any tax or penalty against the appellant, therefore, the Tribunal could not have expanded the scope of the show cause notice by including the appellant company within the sweep of such proceedings. Department submitted that appellant company and the noticee were one and the same entities and the appellant company is dummy of the noticee company. It was therefore not necessary to hear the appellant separately before taking final decision of appropriation of the duty amount. Held that:- the show cause notice, was issued against the original noticee company and there was neither any proposal against the appellant company nor a copy was served to the appellant. Under the circumstances, by supplying a mere copy thereof, the Department cannot initiate proceedings against the appellant. In any case, it was neither the duty nor the authority of the Tribunal to direct so. If, after the Tribunal found that no order adverse to the appellant company could have been passed without a hearing, the Department was inclined to initiate the proceedings against the appellant, it had to take its own decision and issue notice, if even otherwise permissible in law, particularly having regard to the period of limitation prescribed. At any rate, the Tribunal could not have directed the Tribunal to do so and further, such requirement would not be fulfilled by mere supply of a copy of notice in case of another entity. Hence the contention that the appellant, being the dummy of the original noticee, no such separate notice or hearing was needed, simply begs the question. Whether the appellant was dummy or not is a central question and cannot be decided without full participation of the alleged dummy. - Decided in favour of appellant
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