2003 (11) TMI 481 - AT - Central Excise

Summary

Issues:
1. Applicability of formula for reversal of Modvat credit after the expiration of Amnesty Scheme.
2. Commissioner's power to remand the matter to Assistant Commissioner post a specific date.
3. Verification of the amount of credit reversed by the respondents.

Analysis:
1. The case involved a dispute regarding the applicability of the formula for reversal of Modvat credit post the expiration of the Amnesty Scheme. The Commissioner (Appeals) held that the formula under the Amnesty Scheme was not applicable after its expiry on 31-1-97. The Commissioner relied on a previous Tribunal decision emphasizing the strict operation of the Amnesty Scheme within its time frame and conditions. The respondents were directed to reverse the credit availed on inputs used in the manufacture of exported goods after the expiration of the scheme. The appeal was allowed on this legal issue, and the Assistant Commissioner was directed to verify the reversed credit.

2. The Revenue appealed against the order, contending that the Commissioner (Appeals) lacked the authority to remand the matter to the Assistant Commissioner after a specific date. However, upon review, it was found that the Revenue did not challenge the Commissioner's decision on the main legal issue regarding the applicability of the Amnesty Scheme formula. The appellate authority upheld the Commissioner's decision on this issue, concluding that the appeal did not pertain to the part of the order concerning the applicability of the formula.

3. The remaining issue revolved around the Commissioner's directive for the Assistant Commissioner to verify the amount of credit reversed by the respondents. The Revenue objected to this part of the order, fearing prejudice to their interests if the verification was not conducted. The Tribunal determined that the Commissioner did not remand the matter on the legal issue but only instructed the verification of the reversed credit amount. This verification was deemed necessary as the Assistant Commissioner had not addressed the actual quantum of reversal in the initial order. Consequently, the Tribunal rejected the Revenue's appeal, emphasizing that the Commissioner's order did not constitute a remand order and upheld the direction for verification.

In conclusion, the Tribunal dismissed the Revenue's appeal as it found no merit in challenging the Commissioner's decision regarding the applicability of the Amnesty Scheme formula. The directive for verification of the reversed credit amount was upheld as necessary for a comprehensive assessment of the case.