Tribunal jurisdiction in excise appeals upheld where duty demand and penalty were within the scope of the challenged order.

Under Section 35(C)(1) of the Central Excise Act, the Tribunal was not found to have gone beyond the subject matter of the appeal when it quashed the duty demand and penalty. The Commissioner had partly accepted the assessee's abatement claim, confirmed recovery of a smaller amount, and imposed an equal penalty. Since the assessee had appealed against that order, the Tribunal's consideration of the disputed demand and penalty was held to be within scope, and the Revenue's objection that the Tribunal had decided an unrelated issue was rejected.

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Issues: Whether the Tribunal was justified in deciding an issue that was not the subject matter of the order appealed against under Section 35(C)(1) of the Central Excise Act, 1944.

Analysis: The Commissioner's order had accepted the assessee's abatement claim in part, while confirming recovery of a smaller amount and imposing an equal penalty. The assessee appealed against that order, and the Tribunal allowed the appeal by quashing the duty demand and penalty. In those circumstances, the challenge that the Tribunal had travelled beyond the subject matter of the appeal was found to be without merit.

Conclusion: The Tribunal was correct in dealing with the issue, and the Revenue's contention was rejected.

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