Central Excise adjudication powers upheld where Board circular authorized the Assistant Commissioner to decide claims within the duty limit.

Board instructions allocating adjudicatory powers under Central Excise were treated as administrative in character, and the Assistant Commissioner was competent to adjudicate a Modvat matter where the duty involved was within the prescribed limit under the circular then in force. The jurisdictional objection was therefore rejected because the adjudication order was passed within the period covered by the circular and the amount fell within the Assistant Commissioner's authority. As the appellate authority had not examined the merits, the matter was remanded to the Commissioner (Appeals) for fresh decision on merits after giving a hearing and passing a speaking order.

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Issues: Whether the Assistant Commissioner of Central Excise had jurisdiction to adjudicate the Modvat matter involving duty of Rs. 1,19,495, and whether the matter should be remanded for decision on merits.

Analysis: The appellate authority had held that the Assistant Commissioner had exceeded jurisdiction, but the Tribunal found the issue covered by the Board's circular dated 27-2-1997 and the earlier Tribunal view that the allocation of adjudicatory powers under the Board's instructions was administrative in character. The circular applied to matters not adjudicated up to 28-1-1997, and for cases outside category A the Assistant Commissioner was empowered to adjudicate matters involving duty up to Rs. 2 lakh. Since the adjudication order was passed on 21-2-1997 and the duty involved was within the prescribed limit, the objection to jurisdiction was rejected. As the appellate authority had not examined the merits, the matter required reconsideration by the jurisdictional appellate authority with an opportunity of hearing and a speaking order.

Conclusion: The jurisdictional objection was rejected and the matter was remanded to the Commissioner of Central Excise (Appeals) for decision on merits.

Ratio Decidendi: Board circulars allocating adjudicatory powers between excise officers were administrative instructions, and where the circular in force authorized the Assistant Commissioner to decide matters up to the specified duty limit, an adjudication within that limit was valid.

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