1986 (3) TMI 182 - AT - Central Excise

Appeal - No Right of further appeal in respect of any undecided issue when matter decided wholly in favour of the appellant

Summary

Issues:
Appeal against remand order, Stay of operation of order, Reduction of demand after remand, Appeal against reduced demand, Decision on remaining dispute regarding use of power in manufacturing, Issue of appeal against adverse order in adjudication, Appeal rights issue-wise, Appeal rights after favorable judgment, Legal proceedings on surviving lis.

Analysis:
The appeal was filed against an order remanding the matter for de novo consideration of a demand for payment of Rs. 3,31,748.29 due to a lack of clarity in the impugned prices in the show cause notice. The appellant did not deposit duty as the case was remanded. The Tribunal declined a stay but adjourned the appeal sine die pending further developments. After remand, the demand was reduced to Rs. 14,488.20. An appeal against this reduction was decided in favor of the appellant, setting aside the order and demand. The appellant then sought a decision on the remaining dispute regarding the use of power in manufacturing, which was a crucial issue raised in defense against the original demand.

The Tribunal noted that the use of power in manufacturing was one of the issues raised in defense against the demand. In adjudication, if all issues are decided against the assessee, the resulting order is wholly against the case. An appeal lies against an adverse order in adjudication, not against specific adverse findings. Similarly, if an appeal is wholly in favor of the appellant, there is no further appeal, even on specific issues left undecided earlier. The right to appeal arises from an adverse judgment, not merely adverse findings during proceedings. Legal proceedings must have a surviving lis for decisions to be more than academic exercises.

Ultimately, the Tribunal found that the appeal no longer survived, leading to its dismissal. The decision was based on the principle that appeal rights are tied to adverse orders in adjudication rather than specific issues or findings. In this case, with the favorable outcome of the appeal against the reduced demand, the specific issue of power use in manufacturing became moot, and the appeal was deemed dismissed.