CCE, JAIPUR-II Vs. SABOO ENGINEERS P. LTD.

JUDGEMENT

(1.) THE present appeals has been filed by the Revenue being aggrieved with the order passed by the Commissioner (Appeals) setting aside the demand of duty confirmed by the Assistant Commissioner against M/s Saboo Engineer (P) Ltd.,

(2.) WHEN the matter was called, no one was present on behalf of the respondent nor there was any request for adjournment inspite of notice of hearing received by them. We also observe that when the appeal was posted for hearing on earlier two occasions, the respondents had sought adjournment. As the issue involved is in very narrow compass, we take up the appeal for disposal after hearing Shri. M.P.Singh, ld. DR. and perusing the records.

(3.) WE observe that the respondents manufacture machinery and parts falling under Chapter 84 of the Schedule to the Central Excise Tariff Act. The Assistant Commissioner had confirmed and demand of differential duty under adjudication order No.137/99 dated 31.03.1997. On appeal, the Commissioner (Appeals) set aside the order holding that the Department can't issue and confirm the demand for the past clearances if the same were as per the approved Classification List. The ld. DR has, in this connection, referred to Section 110 of the Finance Act, 2000 which provides that any notice issued under Section 11A of the Central Excise Act demanding duty shall de deemed to be and to always have been, for all purposes, validity and effectively issued under that Section, notwithstanding any approval of the Classification List. In view of the provisions of Section 110 which has been given retrospective effect from 17th day of November, 1980, the demand for Central Excise duty can be raised for the past period irrespective of the fact that the Classification List was approved and the excisable goods were removed in accordance with such approval. As the Commissioner (Appeals) has not considered the matter on merits, we set aside the order and allow the appeal by way of remand with the direction to the Commissioner (Appeals) to decide the appeal a fresh, after following the principles of natural justice, on merit.