Commissioner Of Central Excise vs Ascu Ltd. on 11 August, 2006
2 and 3 in the Civil Appeals filed before him. The Department filed three
Appeals before the Tribunal. The Tribunal took up all the Appeals together and
passed a common order. In passing a common order, the Tribunal also relied on
two test reports which pertained to samples taken from the other two parties
and came to the conclusion that densified wood had been manufactured. Ascu
filed a Civil Appeal challenging the order of the Tribunal and also filed a
Rectification Application before the Tribunal on the basis that there was an error
apparent on the face of the record. By a majority it was held by the Tribunal that
as the test reports pertaining to the other two parties were also relied upon for
arriving at a finding against Ascu, there was an error apparent on the face of the
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record. As the Tribunal had set aside its earlier order, the Appeal stood disposed
of as infructuous. Against that order, an Appeal was filed before the Hon'ble
Supreme Court. The Hon'ble Supreme Court by judgment in the case of CCE vs.
Ascu Ltd.1 has held that in effect the Tribunal had reviewed its own order. It was
held that the Tribunal had no power to review. The Hon'ble Supreme Court thus
set aside the order reviewing the earlier order and the Appeals were revived by
the Hon'ble Supreme Court. After hearing the parties, the Hon'ble Supreme
Court was of the view that the Tribunal has, in considering the three Appeals,
used materials which pertain to one party to arrive at a finding against another
party which the Tribunal could not have done. It was submitted before the
Hon'ble Supreme Court that even if the test reports pertaining to the other
parties, which were included in the order of the Tribunal, discloses that there is
sufficient material to arrive at the conclusion that Ascu is manufacturing
densified wood. This argument was not accepted by the Hon'ble Supreme Court
on the ground that the Tribunal had itself set aside its order, inter alia on the
ground that they strongly relied on material which they could not have relied
upon.