Custom, Excise & Service Tax Tribunal
M/S. Chemfab Alkalis Limited vs Cce, Pondicherry on 4 January, 2016
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
Appeal No. E/42357/2014
(Arising out of Order-in-Appeal No.163/2014 (P) dated 22.9.2014 passed by the Commissioner of Central Excise (Appeals), Chennai)
M/s. Chemfab Alkalis Limited Appellant
Vs.
CCE, Pondicherry Respondent
Appearance Shri S. Sankaravadivelu, Advocate for the Appellant Shri B. Balamurugan, AC (AR) for the Respondent CORAM Honble Shri D.N. Panda, Judicial Member Date of Hearing / Decision: 04.01.2016 Final Order No. 40014 / 2016 Learned counsel says that appellant is engaged in the manufacture of Caustic Soda Lye and Liquid Chlorine MS plates, MS angles, MS channels, CR Coil, HR Plates, MS Plates, H.R Coils, PF Beam, MS Rectal Bars, Angle/Channel, CHQ Coil, PMP Plates, Ador Super Bond, Super Bond, Plates, Super Bond-S, GI Sheets, H.R.Shell Coil, MS FIGT, MS Beam, MS Round, Steel Structure, Beam, Steel pars, steel structure, MS Joist, Paint and Varnish etc. covered under Chapter 72, 83 and 90 were used in the factory for repair and maintenance enjoy the input credit. He further submits that learned Commissioner (Appeals) has not given any finding in respect of each item in his order while denying the claim of the appellant.
2. When the impugned order is examined, averment of learned counsel appears to be truthful. The authority has not at all examined each item of the goods as aforesaid to reach to a conclusion as to whether such goods can enjoy input credit or capital goods credit under the law. Without a reasoned and speaking order it is very difficult for the higher courts to make judicial review of the decision of the lower courts and reach to the conclusion as to whether the appellate order of the authority below is correct and in accordance with law.
3. It may be stated that law is well codified in the statute as to the manner how the appellate Commissioner has to act. His duty is to determine the issue examining the material and relevant facts of the case, test the same with evidence on record to apply the law as well as state the reason of his decision and record his decision. Unless such an elaborate process of law is followed, the order passed by him suffers from legal infirmity resulting in miscarriage of justice and violation of natural justice.
4. It may also be stated that violation of natural justice is incurable at the appellate stage. Therefore, the matter is remanded to learned Commissioner (Appeals) to hear the appellant afresh in the light of the development of law in the following judgments:-
(i) Commissioner of Central Excise, Jaipur Vs Rajasthan Spinning & Weaving Mills Ltd. reported in 2010 (255) E.L.T. 481 (S.C.).
(ii) Commissioner of Central Excise, Mysore Vs ICL Sugars Ltd. reported in 2011 (271) E.L.T.360 (Kar.).
(iii) Commissioner of Central Excise, Tiruchirapalli Vs India Cements Ltd. reported in 2014 (305) E.L.T.558 (Mad.).
(iv) Mundra Ports and Special Economic Zone Ltd. Vs Commissioner of Central Excise & Customs reported in 2015-TIOL-1288-HC-AHM-ST.
(v) Sarawati Sugar Mills Vs Commissioner of Central Excise, Delhi-III reported in 2011 (270) E.L.T.465 (S.C.).
(vi) Vandana Global Ltd. Vs Commissioner of Central Excise, Raipur reported in 2010 (253) E.L.T. 440 (Tri. - LB).
(vii) Jayaswal Neco Ltd. Vs Commissioner of Central Excise, Raipur reported in 2015 (319) E.L.T. 247 (S.C.).
(viii) India Cements Ltd. Vs CESTAT, Chennai reported in 2015 (321) E.L.T. 209 (Mad.).
(ix) M/s. Empee Sugars and Chemicals Ltd. Vs Commissioner of Central Excise, Tirunelveli vide Final Order No.41121-40122/2015, dated 06.02.2015 in Appeal No. E/41636 & 41637/2014.
(x) CCE, Salem Vs. Madras Aluminium Co. Ltd. 2015 (316) ELT 59 (Mad.)
5. In view of the above, learned Commissioner (Appeals) shall examine the relevant material facts, pleadings of the appellant in defence and test the same with evidence to apply the law to the situation and on the basis of outcome thereof shall pass a reasoned and speaking order. The appellant shall be given full length of hearing to overcome the grievance of violation of natural justice.
6. In the result, appeal is disposed remanding the matter to the Commissioner (Appeals) with the aforesaid direction.
(Dictated and pronounced in open court) (D.N. Panda) Judicial Member Rex 3