Service order by Affixing on factory gate as first option is Illegal as per Section 37 C (1) of Central Excise Act: CESTAT [Read Order]

The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the service of the order by pasting on the factory gate as the first option is not proper and legal as per 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 as per Section 37 C (1) of the Central Excise Act, it was mandatory on the part of the department to send the order by register post, and if at all the same was not delivered then the second option was to paste/affix on the factory gate. 

Rajesh Nathan, the counsel for the department relied on the decisions made by the lower authorities and contended that the rejection of appeal was as per the law and liable to be sustained. 

The Bench observed that the revenue had admittedly failed to comply with the provision of Clause (a) of Section 37 C (1) of the Central Excise Act and Therefore, the service of the order by affixing on the factory gate was illegal and incorrect and the date of such affixing, cannot be taken as the date of service of the order. 

The two-member bench comprising Ramesh Nair (Judicial) and C L Mahar (Technical) held that the service of the order by passing on the factory gate is not proper and legal and liable to be deleted. 

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates