1998 (8) TMI 269 - AT - Central Excise

Summary

Issues:
1. Validity of the direction given by the Collector to Assistant Collector to file an application under Section 35E(2).
2. Authority under which the Superintendent awarded interest - Hon'ble High Court's order or Central Excise Act.

Analysis:
1. The appeal was against the Order-in-Appeal confirming the Assistant Collector's decision. The Hon'ble High Court directed the Superintendent to determine benefits for three sugar years and handle any interest claims according to law. The Collector (Appeals) heard the appeal, and the Dhampur Sugar Mills objected, stating the Superintendent's order was not under the Central Excise Act. The Collector held that the High Court did not direct interest payment, and the Superintendent had to assess interest as per law. The Collector found the objection invalid, stating the Collector can direct the Adjudicating Authority under Section 35E(2), allowing for appeals by an authorized officer.

2. The appellant argued that the Assistant Collector's appeal under Section 35E(2) was invalid as it should be directed to the adjudicating authority who passed the order. Referring to a Supreme Court case, the appellant contended that the Superintendent lacked authority to award interest. The Department argued that the High Court did not direct interest payment but instructed the Superintendent to handle claims lawfully. The Tribunal analyzed Section 35E(2) and found that the direction to the Assistant Collector was impermissible under the section. Regarding the Superintendent's authority, the Tribunal agreed with the Collector that the Superintendent acted without legal authority in awarding interest.

3. The Tribunal concluded that the appeal by the Assistant Collector was impermissible under Section 35E(2), rendering the impugned order legally incorrect and unenforceable. The Superintendent's award of interest was deemed unauthorized by the Hon'ble High Court's order, and the appeal was allowed on these grounds, setting aside the impugned order.