Doctrine of merger not applied where connected appeals were not heard together and statutory appeal rights remained intact.

The doctrine of merger did not bar the Revenue's appeal where the assessee's appeal against the same review order had been disposed of earlier by mistake. The Tribunal noted that both appeals arose from the same order under Section 35B(2) of the Central Excise Act, 1944, and should have been heard together as connected matters. A party's statutory right of appeal could not be defeated merely because the linked appeal was decided first. The matter was therefore returned for hearing by a two-Member Bench.

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Issues: Whether the doctrine of merger barred the Revenue's appeal when the assessee's appeal against the same order had already been disposed of, and whether the matter required hearing together with the connected appeal.

Analysis: The appeal arose from a review order passed under Section 35B(2) of the Central Excise Act, 1944. The Tribunal noted that the Revenue's appeal was already pending when the assessee's appeal from the same order was decided, so the two cognate appeals ought to have been heard together. In such circumstances, the statutory right of appeal of one party could not be defeated merely because the connected appeal had been disposed of earlier due to a procedural mistake. The doctrine of merger was therefore held inapplicable on the facts.

Conclusion: The doctrine of merger did not bar consideration of the Revenue's appeal, and the matter was returned for hearing by a two-Member Bench.

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