M/S. Avichal Textile Mills (P) Vs. C.C.E., Chandigarh - Court Judgment

Excerpt:
1. appellants filed this appeal against the order-in-original passed by the commissioner of central excise, whereby the annual capacity of production of hot air stenter was determined under sec. 3-a of the central excise act, 1944. while determining the annual capacity of production, the commissioner also had taken into consideration the length of galleries installed to stenter.3. the contention of the appellants is that impugned order is passed without affording an opportunity of personal hearing to the appellants.the appellants also relied upon the decision of the larger bench of the tribunal in the case of sangam processors bhilwara ltd. vs c.c.e., jaipur reported in 2001 (42) rlt 429, wherein the larger bench held that the length of galleries is not to be taken in to account while computing the production capacity of stenter.4. as the impugned order is passed without affording an opportunity of personal hearing to the appellants, the order is passed in violation to the principles of natural justice. the impugned order is set aside and the matter is remanded to the commissioner of central excise for deciding afresh after affording an opportunity of personal hearing to the appellants and after taking into account the above mentioned decision of the larger bench of the tribunal. the appeal is disposed of by way of remand.

Judgment:
1. Appellants filed this appeal against the order-in-original passed by the Commissioner of Central Excise, whereby the annual capacity of production of Hot Air Stenter was determined under Sec. 3-A of the Central Excise Act, 1944. While determining the annual capacity of production, the Commissioner also had taken into consideration the length of galleries installed to stenter.

3. The contention of the appellants is that impugned order is passed without affording an opportunity of personal hearing to the appellants.

The appellants also relied upon the decision of the Larger Bench of the Tribunal in the case of Sangam Processors Bhilwara Ltd. vs C.C.E., Jaipur reported in 2001 (42) RLT 429, wherein the Larger Bench held that the length of galleries is not to be taken in to account while computing the production capacity of stenter.

4. As the impugned order is passed without affording an opportunity of personal hearing to the appellants, the order is passed in violation to the principles of natural justice. The impugned order is set aside and the matter is remanded to the Commissioner of Central Excise for deciding afresh after affording an opportunity of personal hearing to the appellants and after taking into account the above mentioned decision of the Larger Bench of the Tribunal. The appeal is disposed of by way of remand.