Tribunal jurisdiction to decide issues arising from the appealed order upheld; Revenue's objection was rejected.

The Tribunal's jurisdiction under Section 35(C)(1) of the Central Excise Act, 1944 extended to the issue arising from the Commissioner's order itself. The Commissioner had partly accepted the assessee's abatement claim and ordered duty recovery and penalty only on the balance amount. Because the appeal before the Tribunal challenged that very order, the Tribunal was entitled to quash the duty demand and penalty while deciding the appeal. The Revenue's objection that the Tribunal had gone beyond the subject matter of appeal was rejected.

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Issues: Whether the Tribunal could decide an issue not forming part of the order appealed against under Section 35(C)(1) of the Central Excise Act, 1944.

Analysis: The order of the Commissioner showed that the assessee's abatement claim had been partly accepted, with duty recovery and penalty ordered only for the balance amount. The appeal before the Tribunal arose from that very order, and the Tribunal, while allowing the appeal, quashed the duty demand and penalty. In these circumstances, the contention that the Tribunal had travelled beyond the subject matter of appeal was found untenable.

Conclusion: The Tribunal was entitled to decide the issue, and the Revenue's objection was rejected.

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