Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 1532 - AT - Central ExciseManufacture or not - appellants were purchasing parts, components and assemblies as spares for these vehicles in bulk and selling them after repacking and relabeling in retail / bulk pack from their spare parts division - MRP based assessment as required under Section 4A (2) of Central Excise Act, 1944 not followed - opportunity to cross-examine not given - reliability on statements - section 9D of the Excise Act. Held that:- There was no justifiable reason for non-conduct of the verification process when the appellant’s manufacturing premises were still in Hosur. Such laches will therefore not only preclude the Revenue from wriggling out of responsibility for conduct of the verification process, but at the same time put a question on the stand of the department that activity of appellant only amounted to „manufacture‟, which issue per se had been remanded by the Tribunal for de novo verification - Even more surprising however, is the adjudicating authority’s outright refusal to grant cross-examination in spite of the clear remand instructions of the Tribunal. Principles of natural justice - opportunity to cross-examine - Held that:- The necessity of strictly complying with the provisions of Section 9D of the Central Excise Act, 1944, including the requirement for grant of cross examination, has been consistently reiterated by higher appellate forums - the directions of the Tribunal in the earlier final order dt. 16.11.2009 has not been complied with and has only been followed in the breach. In consequence, appellants surely have been denied natural justice and opportunity to establish their credentials and case. The proceedings which have seen two rounds of litigation had commenced by way of issue of first SCN No.29/2008 dt. 10.4.2008. More than a decade has passed by, without any sign of resolution of the allegations raised by the department. The opportunity given for causing verification of the activity of the appellants was frittered away only due to quasi-judicial lethargy. The directions for granting cross examination was also not honoured - we find no purpose would serve by once again causing remand of the matter to the adjudicating authority. The impugned order cannot then sustain and will have to be set aside - appeal allowed - decided in favor of appellant.
|