2005 (1) TMI 511 - AT - Central Excise

Summary

Issues:
- Rejection of refund claims under Notification No. 33/99-C.E.
- Applicability of excise duty exemption on Tea
- Interpretation of relevant Acts for levying additional duty of excise

Analysis:
The judgment by the Appellate Tribunal CESTAT, KOLKATA dealt with the rejection of refund claims made by the appellants under Notification No. 33/99-C.E. The appellants' claims were turned down on the basis that the product in question, Tea, was exempted from excise duty of Re. 1/- per Kg. by Notification No. 6/2003-C.E. Instead, an additional duty of excise of Re. 1/- per Kg. by way of surcharge was imposed under the Fourth Schedule via clause 149 of the Finance Bill, 2003. This levy was enacted on 14-5-2003 by Section 157 of the Finance Act, 2003, not under the specified Acts of Additional Duties of Excise (Goods of Special Importance) Act, 1957, or Additional Duties of Excise (Textiles & Textile Articles) Act, 1978, as mentioned in the Notification.

The Tribunal, comprising Ms. Jyoti Balasundaram and Shri S.S. Sekhon, considered the specific language of the Notification, which exempts goods specified in the Schedule, except certain goods, cleared from specific locations. The exemption applies to duty of excise leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957, and Additional Duties of Excise (Textiles and Textile Articles) Act, 1978. As the additional duty of excise on Tea was not levied under the mentioned Acts, the Tribunal found no merit in the refund claim. Consequently, the appeal was dismissed by the Tribunal, as the claim for refund did not align with the provisions of the relevant Acts specified in the Notification.

In conclusion, the Tribunal's decision was based on a strict interpretation of the Notification and the Acts governing the levy of excise duties. The Tribunal emphasized that the claim for refund was not substantiated as the additional duty of excise on Tea did not fall under the Acts specified in the Notification. The judgment underscores the importance of aligning refund claims with the specific provisions of relevant laws and notifications to ensure their validity and acceptance by the authorities.