CESTAT Quashes Rejection of Excise Appeal on ground of Violation of Section 37 C (1) of Central Excise Act [Read Order]

The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the rejection of the excise appeal on the grounds of violation of section 37 C (1) of the Central Excise Act,1944. 

Navkar Agro Industries Ltd, the appellant assessee appealed against the order of the Commissioner (Appeals) whereby the Commissioner (Appeals) rejected the appeal on the ground of time bar contending that the order in original was served on the assessee by pasting/affixing the same on the factory gate of the assessee’s factory. 

Nilesh Suchak, the counsel for the assessee contended that the appeal against the order was only when the order copy was received by them through their Dena Bank on 25.02.2014 and the appeal was filed by them within 60 days i.e. on 31.03.2014. Accordingly, there was no delay in filing an appeal before the Commissioner (Appeals). 

Rajesh Nathan, the counsel for the department relied on the decisions made by the lower authorities and contended that the rejection of appeal was on the ground of limitation. 

The Bench observed that it was not possible to send by tendering or by registered post which means after sending the order by registered post /speed post if the same is returned, thereafter only the revenue should paste/ affix the order copy on the factory gate of the assessee. The revenue had admittedly failed to comply with the provision of Clause (a) of Section 37 C (1) of the Central Excise Act. 

The two-member bench comprising Ramesh Nair (Judicial) and C L Mahar (Technical) quashed the rejection of the appeal by the Commissioner and remanded the matter back for deciding the matter on merit. 

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