Cross-objections under the Central Excise appellate scheme must be treated as an appeal when statutory appeal provisions apply.

Cross-objections filed by an assessee in proceedings arising from a departmental challenge under the Central Excise Act, 1944 must be treated as an appeal where the statutory scheme applies the appeal provisions to the Revenue's application. Section 35E(4) read with Section 35B(4) permits the respondent to file cross-objections against any part of the order appealed against, and requires them to be disposed of as if presented within time. On that basis, the cross-objections could not be ignored. The impugned order was set aside and the matter remanded to the Commissioner (Appeals) for fresh decision on both parties' challenges.

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Issues: (i) Whether cross-objections filed before the Commissioner (Appeals) in a departmental appeal could be treated as an appeal by the assessee.

Issue (i): Whether cross-objections filed before the Commissioner (Appeals) in a departmental appeal could be treated as an appeal by the assessee.

Analysis: Section 35E(4) of the Central Excise Act, 1944 provides that an application filed by the Revenue is to be heard as if it were an appeal against the adjudication order, and the provisions governing appeals, including Section 35B(4), apply to such proceedings. Section 35B(4) specifically permits the respondent to file cross-objections against any part of the order appealed against, and requires such memorandum to be disposed of as if it were an appeal presented within time. Reading these provisions together, and following the binding High Court view, the cross-objections filed by the assessee could not be ignored and had to be treated as an appeal.

Conclusion: The cross-objections were required to be treated as an appeal by the assessee.

Final Conclusion: The impugned order was set aside and the matter was remanded to the Commissioner (Appeals) for fresh decision on both sides' challenges, with the assessee's cross-objections to be heard as an appeal.

Ratio Decidendi: Cross-objections filed under the appellate scheme of the Central Excise Act, 1944 must be treated and disposed of as an appeal when the statute makes the appeal provisions applicable to the Revenue's application.

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