2005 (9) TMI 429 - AT - Central Excise

Summary

Issues:
Appeal against Order-in-Appeal No. 118/98 dated 28-9-1998 passed by the Commissioner of Central Excise (Appeals), Trichy regarding the sanction of rebate for excess sugar production under Notification No. 135/83-C.E., dated 30-4-83.

Detailed Analysis:

1. Background and Claim for Rebate:
The appellants, being sugar manufacturers, sought rebate for excess sugar production under Notification No. 135/83-C.E. Initially, a rebate was sanctioned, but later the department identified an error in calculating the average production of sugar. Consequently, a duty demand was confirmed under Section 11A of the Central Excise Act, 1944. The Commissioner (Appeals) upheld this decision, leading to the appellants challenging the order before the Tribunal.

2. Arguments and Contentions:
During the proceedings, the appellants' counsel argued that a letter from the Collector's office dated 13-11-1994 finalized the rebate amount, which should be considered as an adjudication order. The counsel contended that once the Collector decided on the rebate, lower authorities should not review this decision. On the other hand, the Revenue's representative maintained that the correct procedure was followed in recovering the excess rebate, emphasizing that the orders sanctioning the rebate were not issued by the Collector.

3. Tribunal's Analysis and Decision:
The Tribunal carefully reviewed the case records and highlighted that the letter dated 13-11-1984 did not constitute an adjudicating order by the Collector. It was clarified that any short levy could be recovered through a show cause notice under Section 11A of the Central Excises and Salt Act, 1944. The Tribunal concurred with the Revenue's stance that the recovery of excess rebate was carried out following the correct procedure. Additionally, it was noted that the show cause notice was issued within the stipulated timeframe, thus not being time-barred. Consequently, the Tribunal found no merit in the appeal and rejected it.

4. Conclusion:
The Tribunal's decision, pronounced on 13-9-2005, upheld the recovery of the excess rebate granted to the appellants, emphasizing the adherence to legal procedures and the absence of grounds for challenging the duty demand under Section 11A of the Central Excise Act, 1944.