2004 (11) TMI 427 - AT - Central Excise

Summary

Issues: Application for rectification of mistake regarding the invocation of the larger period of limitation under Rule 57-I of the Central Excise Act.

In this case, the Appellate Tribunal CESTAT, Mumbai, dealt with an application for rectification of mistake filed by the Revenue against the Tribunal's Final Order. The Tribunal had remanded the matter to the adjudicating authority for fresh orders, not invoking the larger period of limitation under Rule 57-I of the Central Excise Act. The Revenue contended that the Tribunal's decision was contrary to the law laid down by the Supreme Court in the case of Collector of Central Excise v. Raghuvar (India) Ltd. The Supreme Court had held that the provisions of Section 11A of the Central Excise Act do not apply to demands under Rule 57-I before its amendment in 1998. The Tribunal's decision to not invoke the larger period for demanding wrongly taken credit under Rule 57-I was challenged by the Revenue.

Upon considering the submissions and the impugned order, the Tribunal found that the decision to remand the matter for considering the normal period of limitation was not in line with the Supreme Court's ruling in the Raghuvar (India) Ltd. case. The Tribunal acknowledged that the limitations under Section 11A do not apply to demands under Rule 57-I before the amendment. Consequently, the Tribunal concluded that the ROM application needed to be allowed, and the matter should be relisted for a fresh decision to determine the correct legal position in light of the Supreme Court's precedent. The Registry was directed to re-list the appeal for further consideration and decision.