Appellate remand power includes re-quantification of refund where statute allows orders as thought fit.

The Commissioner (Appeals) was held to have power to remand a refund matter for re-quantification where the appellate statute authorises the authority to pass such orders as it thinks fit. The restriction in Section 35A(3) of the Central Excise Act was not treated as curtailing the remand power under Section 85(4) of the Finance Act in the service tax context. The refund claims concerned unutilised CENVAT credit under Rule 5 of the CENVAT Credit Rules, 2004 read with Notification No. 5/06-CE(NT), and the remand was limited to quantification on the basis of records and certificates. The remand order was upheld and the Revenue's challenge failed.

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Issues: Whether the Commissioner (Appeals) had the power to remand the matter to the adjudicating authority for re-quantification of refund.

Analysis: The appellate authority's power to pass orders as it thinks fit was held to include the power of remand. The restriction contained in Section 35A(3) of the Central Excise Act, 1944 was held not to curtail the remand power exercised in the service tax framework under Section 85(4) of the Finance Act. The refund claims arose from unutilised CENVAT credit under Rule 5 of the CENVAT Credit Rules, 2004 read with Notification No. 5/06-CE(NT) dated 14/03/2006, and the remand was only for quantification on the basis of records and certificates.

Conclusion: The Commissioner (Appeals) was competent to remand the matter, and the remand order was upheld; the Revenue's challenge failed.

Ratio Decidendi: The power of an appellate authority to pass such orders as it thinks fit includes the power to remand unless expressly excluded by the governing statute.

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