Rectification for mistake apparent from record justified where retracted evidence and material statements were misread.

Section 35C(2) of the Central Excise Act, 1944 permits rectification where an order contains a mistake apparent from the record. A patent error may arise if a contemporaneous retraction is not noticed or material statements are misread so that the conclusion is unsupported by the record. Such an error does not require reappraisal of a debatable issue; it is amenable to rectification. On that basis, the final order was recalled and the matter restored for fresh hearing.

---

---

Issues: Whether the Tribunal could recall its earlier final order in exercise of rectification powers on the ground that the decision was based on a mistake apparent from the record.

Analysis: The earlier order was examined in the light of Section 35C(2) of the Central Excise Act, 1944, which permits amendment of an order to rectify a mistake apparent from the record. The decision in the earlier order had relied on two statements, but one statement had been retracted by affidavit on the same day and this retraction had not been noticed. The other statement did not support the conclusion drawn in the earlier order that the goods were received without payment of duty. The defect was held to be an obvious error on the face of the record and not a matter requiring reappraisal of a debatable issue.

Conclusion: The applications for rectification were allowed and the earlier final order was recalled.

Final Conclusion: The matter was restored for fresh hearing because the earlier decision was found to rest on a patent mistake in appreciation of the record.

Ratio Decidendi: A rectification power may be invoked where the impugned order is founded on an obvious error apparent from the record, including failure to notice a contemporaneous retraction and a misreading of material statements.

---