1999 (12) TMI 664 - AT - Central Excise

Summary

Issues:
Appeal against rejection of refund claim under Central Excise Tariff classification.

Analysis:
The appellants contested the rejection of their refund claim amounting to Rs. 2,03,856.51 under the Central Excise Tariff classification. Initially, the Assistant Collector classified Switch fuses and Fuse switches under 8536.90, leading to duty payment by the appellants. The Collector (Appeals) directed a full duty pre-deposit, challenged by the appellants in a Writ Petition before the High Court. Following the High Court's directive, the appellants deposited one-third of the duty demand for appeal. Despite the Superintendent's subsequent letter suggesting a different classification under 8537.00 and offering to drop the duty demand if the appeal was withdrawn, the appellants withdrew the appeal and filed for a refund. The Assistant Collector sanctioned the refund, but the Collector (Appeals) reversed this decision, prompting the appellants to appeal to the Tribunal.

The Revenue, represented by the SDR, argued that the original classification under 8536.90, upheld by the Collector of Central Excise, remained valid as the appellants withdrew their appeal before the CEGAT. Therefore, the Revenue contended that the disputed amount was not refundable to the appellants.

Upon hearing both sides, the Tribunal observed that the appellants sought the refund of the pre-deposited amount for their appeal before the Collector of Central Excise. Despite the Superintendent's letter indicating a different classification, the order by the adjudicating authority under 8536.90 still stood. The Tribunal emphasized that the effect of a lawful order could not be negated by subsequent correspondence from the Superintendent. Consequently, since the adjudication order remained in force, the deposited amount could not be refunded to the appellants. Therefore, the Tribunal found no fault in the impugned order and dismissed the appeal.

In conclusion, the Tribunal upheld the Collector of Central Excise's classification under Heading 8536.90, emphasizing the binding nature of lawful adjudication orders and rejecting the appellants' refund claim based on subsequent correspondence suggesting a different classification.