2001 (8) TMI 1311 - AT - Central Excise

Summary

Issues:
1. Dispute regarding the reversal of Modvat credit quantification.
2. Jurisdiction of the Tribunal to deal with the appeal.
3. Refund of unutilized accumulated credit due to Revenue's restraint.

Issue 1: Dispute regarding the reversal of Modvat credit quantification:
The appeal was filed against the Deputy Commissioner's order quantifying the amount of Modvat credit to be reversed by the appellants. The Tribunal had previously remanded the matter to the Commissioner for a fresh decision following the Board's Circular. The Commissioner directed the Assistant Commissioner to quantify the demand, resulting in the Deputy Commissioner quantifying Rs. 24,82,488 to be reversed. The appellants did not contest this quantification but sought a refund of Rs. 74,12,954, representing unutilized credit due to Revenue's restrictions on credit usage.

Issue 2: Jurisdiction of the Tribunal:
The Revenue objected that the appeal should have been filed before the Commissioner (Appeals) rather than the Tribunal. However, the Tribunal found that the Deputy Commissioner's order was part of the Commissioner's directive and did not decide any legal issue independently. As the appeal was filed within the limitation period, following the law laid down by the West Zonal Bench, the objection regarding jurisdiction was overruled.

Issue 3: Refund of unutilized accumulated credit due to Revenue's restraint:
The Tribunal noted that the appeal focused on seeking a refund of the accumulated unutilized credit, not addressed in the previous proceedings concerning the reversal of specific credit amounts. As the issue of refund was not part of the proceedings leading to the confirmed reversal of credit, the Tribunal deemed it inappropriate to entertain the appeal on this basis. The appellants were advised to approach their Central Excise authorities for claiming a refund of the unutilized credit, leading to the rejection of the appeal due to lack of merit.

In conclusion, the Tribunal upheld the quantification of the Modvat credit reversal by the Deputy Commissioner but rejected the appeal seeking a refund of unutilized accumulated credit, directing the appellants to pursue the refund claim with the Central Excise authorities. The objection to the Tribunal's jurisdiction was overruled based on the interpretation of the Deputy Commissioner's order as part of the Commissioner's directive.