Full Judgment
1.2 On 19-2-2002, they received a letter from . Commissioner, informing them that the request for availment of compounded levy scheme under Rule 15 of Central Excise (No. 2) Rules, 2001 for the year 2001-02 cannot be acceded and in view of the provisions of Notification No.32/2001-C.E., dated 28-6-2001 and application was rejected by the Commissioner.
1.3 On a persistent persual of obtaining an order, a communication dated 7-3-2002 was received from Dy. Commissioner (Tech), Central Excise and Customs, Surat-I informing the rejection of Commissioner to be in view of the explanation in Paragraph 7(2) of the said Notification 32/2001-C.E., dated 28-6-2001. It also intimated that the reconsideration has lost its relevance because of withdrawal of scheme from 1-3-2002.
1.4 Duty demands were made on ad valorem basis vide letter dated 11-3-2002 from Range-1, Div. III Superintendent.
1.5 In spite of persistent requests, no appealable order was issued by the Commissioner. Hence this appeal against letter dated 19-2-2002 of Jt. Commissioner intimating the rejection by the Commissioner.
2.1 After hearing both sides and considering the material on record, it is found - (a) On a prima facie consideration, the mere Registration obtained effective 12-4-2001 without effective power operated installation of plant & machinery cannot constitute the appellant to be an existing Independent Textile Processor to be impugned by explanation X to the notification. Since a registration under Central Excise always has to proceed manufactures.
(b) From the papers on record, the Commissioner's mind in rejecting the application made and reasons thereto that also without a hearing or an appealable speaking order issued by him cannot be appreciated.
The appellant's right to appeal has been frustrated. The issue of a speaking order dismissing the claim and has resulted in a demands of duties. Commissioner in such a case where important fiscal liabilities will result has to hear and thereafter issue an order on merits giving reasons for his decision. This can be corrected now by a post-decision hearing.
(c) The present appeal, against a letter communicating the Commissioner's decision to reject the request cannot be entertained.
The appeal is returned, with directions to the Commissioner to hear the appellant and thereafter pass a speaking order. Appellants at liberty thereafter to file a copy of the said order and pursue the appeal.