2004 (4) TMI 500 - AT - Central Excise

Summary

Issues:
1. Benefit of deemed credit admissibility.
2. Jurisdiction of issuing show cause notices under Rule 57-I of the Central Excise Rules.
3. Proper officer designation for Rule 57-I notices.
4. Grounds for recall of the Tribunal's final order.

Analysis:

Issue 1: Benefit of deemed credit admissibility
The Tribunal, in the case at hand, held that the benefit of deemed credit is not admissible to the Respondents/assessees. The impugned order of the Commissioner (Appeals) was set aside, and the appeals of the Revenue were allowed. This decision was based on a larger bench ruling in the case of Digambar Foundry v. CCE, where it was established that re-rollers exceeding Rs. 75 lakhs in aggregate value of clearances in a financial year are not eligible for the benefit of deemed credit under the order dated 1-3-1994.

Issue 2: Jurisdiction of issuing show cause notices under Rule 57-I
The applicants sought the recall of the Tribunal's final order, arguing that they were not informed about the hearing, depriving them of the opportunity to contest the question of jurisdiction. They contended that show cause notices under Rule 57-I should have been issued by the adjudicating authority, the Additional Collector, not the Superintendent of Central Excise. The applicants relied on previous Tribunal decisions to support their claim.

Issue 3: Proper officer designation for Rule 57-I notices
The Revenue opposed the prayer for recall, asserting that the Superintendent is the proper officer to issue and adjudicate notices under Rule 57-I. The Board's circular specified that the Collector is the proper officer for notices under Rule 57-I for recovery within the extended period of limitation. The Tribunal concurred with the Revenue, emphasizing that the Superintendent of Central Excise is designated as the proper officer for Rule 57-I notices unless notified otherwise.

Issue 4: Grounds for recall of the Tribunal's final order
After considering the submissions from both parties, the Tribunal found merit in the Revenue's argument. It was established that the Superintendent of Central Excise is the proper officer for issuing and adjudicating show cause notices under Rule 57-I. Since no valid grounds for recall were presented by the applicants, their request was dismissed by the Tribunal.