1997 (12) TMI 170 - AT - Central Excise

Summary

Issues:
Rectification of mistake application regarding the Tribunal's final order not addressing the applicability of Note 5 to Chapter 30 of the Central Excise Tariff Act, 1985.

Analysis:
The rectification of mistake application was filed by M/s. Jagasonpal Pharmaceuticals Pvt. Ltd. concerning the Tribunal's Final Order No. A/2448/96-NB, dated 14-10-1996, where the Tribunal did not provide any finding on the arguments raised by the appellants regarding the applicability of Note 5 to Chapter 30 of the Central Excise Tariff. The appellant's counsel contended that the Tribunal wrongly distinguished a previous decision and failed to address a crucial argument, which is a ground for rectification as per legal precedent (Heal Well Pharmaceuticals Pvt. Ltd. v. CCE). The appellant also cited a previous case where the Tribunal recalled an order in a similar situation (Misc. Order No. E/105/97-D).

The Note 5 to Chapter 30 of the Tariff Act states that certain activities related to products of heading No. 30.03 amount to 'manufacture', including conversion of powder into tablets or capsules, labeling, repacking, or any treatment to make the product marketable. The Tribunal acknowledged this argument in the final order but did not provide a specific finding on it.

The dispute in the case revolved around Modvat credit on disposable syringes and needles packed with injections manufactured by the appellants. The appellants argued that these items are inputs for the final product, Medatec 25, filled in ampules. The Tribunal noted that the appellants declared the syringes and needles as packing material in their declaration and considered a prior decision in a similar case (Heal Well Pharmaceuticals Pvt. Ltd. v. CCE).

Referring to legal principles, the Tribunal cited the Hon'ble Supreme Court case of T.S. Balram v. Volate Brothers, emphasizing that a mistake apparent on record must be obvious and patent, not requiring an extensive reevaluation of differing opinions. Ultimately, the Tribunal found no apparent mistake on record and rejected the rectification application.

In conclusion, the Tribunal's decision was based on the lack of a clear and patent mistake on record, leading to the rejection of the rectification application regarding the Tribunal's failure to address the applicability of Note 5 to Chapter 30 of the Central Excise Tariff Act, 1985 in the final order.