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Issues: Whether the order-in-appeal setting aside the adjudication on the ground of alleged bias and want of competence of the Deputy Collector, and remanding the matter to the Collector for de novo adjudication, was lawful and proper.
Analysis: The Central Government found that the appellate order did not disclose any reasons showing why the Deputy Collector lacked jurisdiction or competence to adjudicate the matter. It also held that the mere fact that seizure had taken place on the date of the Deputy Collector's visit to the factory did not establish a real likelihood of bias or prejudice against the party. The remand to the Collector of Central Excise, Bombay was additionally held to be beyond the appellate authority's jurisdiction.
Conclusion: The order-in-appeal was held to be contrary to law and not based on facts, and was set aside.
Final Conclusion: The matter was sent back to the appellate authority for fresh consideration and a fresh order in accordance with law.