2009 (8) TMI 1028 - AT - Central Excise

Tribunal Upholds Decision on Rectification Application, Show Cause Jurisdiction & Precedent Consideration

The Tribunal rejected the appellant's application for rectification of mistakes in the depreciation claim, jurisdiction of show cause notice issuance, and ... - Issues involved: Rectification of mistakes in the Tribunal order regarding depreciation claim, jurisdiction of show cause notice issuance, consideration of Tribunal decisions in the appeal.Rectification of mistakes in depreciation claim: The appellant sought rectification of the Tribunal order, arguing that the depreciation claim was not allowed for the purpose of claiming double benefit but for computing income. The advocate highlighted that depreciation claim must be allowed and deducted from income to pay less tax, indicating no double benefit. The Tribunal noted that depreciation had been allowed in the assessment order, even if carried forward, and it was not relevant whether the appellants utilized the benefit for calculating taxable income. The Tribunal reiterated that the order should not be reviewed, but for justice, the points were discussed again.Jurisdiction of show cause notice issuance: The appellant contended that the show cause notice was issued without jurisdiction due to the absence of Rule 57U in the statute book. However, the Tribunal referred to a Larger Bench decision which held that show cause notices could be issued under Central Excise Rules, 1944. The Tribunal found that the issue was covered by the Larger Bench decision and was applicable to the present case, rejecting the appellant's argument regarding the jurisdiction of the show cause notice.Consideration of Tribunal decisions in the appeal: The appellant claimed that the Tribunal did not consider two decisions cited by them. However, the Tribunal clarified that both decisions were indeed considered in the order, stating that the issues in those cases were different and not comparable on facts. The Tribunal found no merit in the appellant's argument regarding the consideration of Tribunal decisions.Conclusion: The Tribunal rejected the ROM application filed by the appellant, stating that it had no merits based on the discussions and considerations presented. The decision was pronounced in court on 11-8-2009.