Rectification of Mistake Application Granted by Appellate Tribunal for Time-barred Demand

The Appellate Tribunal CESTAT, New Delhi considered an application for rectification of mistake in its Final Order regarding a time-barred demand. The application filed by M/s. Chinttapurni Engineering Works challenged the decision on merits and invoked the extended period. The Tribunal, citing legal precedent, acknowledged an error apparent on the face of the record as the plea of demand being time-barred was not addressed in the original Order. Consequently, the Final Order was recalled for further consideration of the time-bar issue, with a scheduled hearing date set for 11-12-2003.

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Issues: Application for rectification of mistake in Tribunal's Final Order regarding demand being time-barred.

In the judgment delivered by the Appellate Tribunal CESTAT, New Delhi, the application for rectification of mistake in Tribunal's Final Order was considered. The application was filed by M/s. Chinttapurni Engineering Works challenging the decision both on merits and on the ground that the extended period is not invocable. The learned Advocate representing the applicant argued that the plea of limitation was raised in the Appeal and orally argued before the Tribunal, but no finding was recorded on this aspect, leading to an error apparent on the face of the record. The Advocate cited the case of Surjeet Singh and others v. Union of India, emphasizing the Tribunal's duty to correct its mistake of law when a patent error is brought to its notice.

The judgment also referenced the case of CCE, Calcutta v. A.S.C.U. Ltd., where it was held that a mistake apparent on the face of the record must be obvious and patent, not requiring a long process to establish. After considering the submissions from both sides, the Tribunal noted that the demand of duty had been confirmed against the Applicants for the period 1994-2000. It was observed that the plea of demand being time-barred was specifically taken by the Applicants in the Memo of Appeal, listed as ground No. 1. As the time-bar aspect was not addressed in the impugned Order, the Tribunal acknowledged a mistake apparent on the face of the record. Consequently, the Final Order was recalled for the sole purpose of considering the plea of demand being time-barred, and the matter was scheduled for regular hearing on 11-12-2003.

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