2001 (8) TMI 1317 - AT - Central Excise

Summary

Issues:
1. Dispute over reversal of Modvat credit quantification.
2. Jurisdiction of the Tribunal to deal with the appeal.
3. Refund of unutilized Modvat credit.

Analysis:

Issue 1: Dispute over reversal of Modvat credit quantification
The appeal was filed against the Deputy Commissioner's order quantifying the Modvat credit to be reversed. The appellant contended that a dispute regarding the reversal procedure was ongoing with the Central Excise authorities. The matter was remanded 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 by the appellants. The appellants accepted this quantification but sought a refund of the unutilized credit accumulated during the relevant period. The Tribunal found that the appellants should approach the Central Excise authorities for the refund claim as it was not part of the current appeal's subject matter.

Issue 2: Jurisdiction of the Tribunal
The Revenue objected that the appeal should have been filed before the Commissioner (Appeals) instead of the Tribunal as it was against the Deputy Commissioner's order. However, the Tribunal held that since the appeal was filed within three months of the quantification order by the Deputy Commissioner, it was within the limitation period. The Tribunal overruled the objection, citing a previous case law that the date of communication of the appealable order is when the demand quantification is received by the assessee.

Issue 3: Refund of unutilized Modvat credit
The appellants claimed a refund of the unutilized credit accumulated due to the Revenue's restriction on its use. However, the Tribunal noted that the issue of refund was not part of the previous proceedings that led to the quantification order. Therefore, the Tribunal rejected the appeal, advising the appellants to seek the refund directly from their Central Excise authorities.

In conclusion, the Tribunal upheld the quantification of the Modvat credit to be reversed by the appellants but denied their claim for a refund of the unutilized credit, directing them to approach the Central Excise authorities for such a claim.