Tribunal power to recall ex parte order upheld where sufficient cause and apparent mistake justified restoration of appeal.

Rule 41 of the CESTAT (Procedure) Rules, 1982 gives the Tribunal wide power to pass orders necessary to secure the ends of justice and prevent abuse of process. Where a party failed to appear because a post-merger change of address was not reflected, that constituted sufficient cause, and a rectification application exposing a substantive mistake apparent on the record could justify recall of an ex parte order. The plea that the Tribunal had become functus officio did not bar exercise of that power. The earlier ex parte order was therefore liable to be recalled, and the appeal restored for hearing on merits.

---

---

Issues: Whether the Appellate Tribunal could recall its ex parte order and restore the appeal on the ground of sufficient cause and mistake apparent on the record, notwithstanding the objection that it had become functus officio.

Analysis: The Court held that Rule 41 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982 confers wide powers on the Tribunal to pass orders necessary to secure the ends of justice and to prevent abuse of process. It accepted that the petitioner had not appeared because the change of address was not reflected after merger, which constituted sufficient cause. The Court also found that the rectification application pointed out a substantive mistake apparent on the record, including the Tribunal's failure to properly consider the legal position on the retrospective application of the amendment to Rule 6(6) of the Cenvat Credit Rules, 2004. In these circumstances, the Tribunal could not be treated as functus officio and ought to have recalled the earlier ex parte order.

Conclusion: The Tribunal had the power to recall the ex parte order and should have restored the appeal for hearing on merits; its refusal was unsustainable.

Ratio Decidendi: A tribunal vested with power to do complete justice under its procedural rules may recall an ex parte order where sufficient cause for absence and a mistake apparent on the record are shown, and such power is not defeated by a plea of functus officio.

---