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of <h1>High Court sets aside Tribunal order under Central Excise Act for lack of reasoning elements.</h1> <h3>Commr. of Cus., C. Ex. & S.T., Raipur Versus Sarda Energy & Minerals Ltd.</h3> Commr. of Cus., C. Ex. & S.T., Raipur Versus Sarda Energy & Minerals Ltd. - 2017 (345) E.L.T. 357 (Chhattisgarh) Issues:Appeal under Section 35G of the Central Excise Act, 1944 - Validity of show cause notice invoking extended period of limitation - Sufficiency of reasons in the Tribunal's order - Compliance with legal principles in passing orders - Remand of the matter for a fresh reasoned order.Analysis:The judgment pertains to an appeal under Section 35G of the Central Excise Act, 1944, challenging the order passed by the Customs, Excise and Service Tax Appellate Tribunal. The Tribunal had held that the show cause notice issued by invoking the extended period of limitation was not sustainable in law, without delving into the merits of the case. The High Court observed that the Tribunal's order lacked essential elements required for a reasoned decision, as emphasized in previous judgments. It was noted that the Tribunal failed to provide necessary facts, parties' contentions, applicable law, and reasons supporting its conclusions, rendering the order unsustainable.The High Court referred to previous decisions highlighting the importance of detailed reasoning in orders subject to revision or appeal. It was emphasized that every order must contain essential facts, parties' arguments, applicable law, and reasons for the decision. The Court found that the Tribunal's order in the present case lacked these crucial elements, leading to the order being set aside for being unsustainable in law. The Court stressed the need for adherence to established legal principles in passing orders amenable to appeal before higher forums.Regarding the issue of limitation under Section 11A of the Excise Act, the Court noted that there was insufficient discussion in the Tribunal's order on why the grounds for invoking the extended period of limitation were not applicable. The Court highlighted the importance of a thorough discussion on such matters, especially in cases where the limitation period could be extended to five years under specific circumstances. Due to the deficiencies in the Tribunal's order, the High Court set aside the order and remanded the matter for a fresh reasoned and speaking order in accordance with the law.In conclusion, the High Court allowed the appeal, remanding the matter to the Appellate Tribunal for a fresh order. It was specified that the Tribunal could proceed ex parte against the respondent if they fail to appear after notice, with a requirement to record reasons for such a decision. The judgment underscored the significance of providing detailed reasoning and complying with legal principles in passing orders subject to appeal, ensuring a fair and just adjudication process.
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