2017 (6) TMI 753 - AT - Central Excise

Tribunal rectifies order, holds appellant liable for interest payment. Importance of clarity and proper procedures emphasized.

Kaalmanns Plastics Pvt. Ltd. Versus CCE & ST Hyderabad-IV

The Revenue filed for rectification of a final order concerning interest liability. The Tribunal rectified the order, holding the appellant liable for ... Rectification of Mistake - setting aside of interest - Held that: - this Court finds that the application filed by appellant needs to be accepted for more than one reason. Firstly it is correctly pointed out by revenue that appellant had admitted and accepted the interest payment and specifically mentioned in the grounds of appeal that they are not contesting the interest. Secondly, the appeal memo specifically indicates that appellant had prayed for setting aside the penalties imposed - the final order No. A/30988/2016, dt. 18.10.16 needs correction to the extent that in the said order interest claim has been held unsustainable, needs to be set aside - ROM application allowed. Issues: Rectification of mistake in final order regarding interest liabilityAnalysis:1. The Revenue filed an application for rectification of mistake in the final Order No. A/30988/2016, dated 18.10.2016, concerning the non-charging of interest by the Tribunal. The Departmental representative argued that the Tribunal erred in allowing the appeal of the assessee based on previous decisions, as the appellant had admitted and accepted the interest payment in the grounds of appeal and specifically mentioned they were not contesting the interest.2. The Departmental representative highlighted that the appellant had prayed for setting aside the penalties imposed by lower authorities in the appeal memo. The Tribunal found that the appellant's argument during the appeal hearing to set aside the interest imposed was incorrect, as they should have filed an application to raise additional grounds in the appeal memo if they intended to contest the interest liability.3. Upon perusal of records, the Tribunal concluded that the final order needed correction as the interest claim was held unsustainable, and therefore, the error in the final order dated 18.10.2016 was rectified. The Tribunal held that the appellant was liable to discharge the interest, which they had already done as confirmed by the appellant's counsel. The application for rectification of mistake was disposed of accordingly.This judgment emphasizes the importance of clarity in pleading and the need to follow proper procedures when contesting specific issues such as interest liability in appeals before the Tribunal. It highlights the significance of accurately presenting arguments and grounds in the appeal memo to avoid unwarranted claims and rectifications in the final order.