2007 (10) TMI 467 - AT - Central Excise

Summary

Issues Involved:
1. Demand of duty cleared under AR-4 by debiting the bond of duty involved.
2. Jurisdiction of the Appellate Tribunal under the first proviso to Section 35B(1) of the Central Excise Act, 1944.

Analysis:

Issue 1: Demand of duty cleared under AR-4 by debiting the bond of duty involved:
The case involves an appeal against the Order-in-Appeal No. SVS/102/NGP-I/2005 dated 18-4-2005 regarding the demand of duty cleared under AR-4 by debiting the bond of duty involved. The appellant allegedly did not submit proof of exports, leading to the allegation that they are liable to pay the duty involved in the goods cleared for export. Both lower authorities found the appellant liable for the duty involved in such clearances.

Issue 2: Jurisdiction of the Appellate Tribunal under the first proviso to Section 35B(1) of the Central Excise Act, 1944:
The JDR raised a preliminary objection regarding the jurisdiction of the Appellate Tribunal under the first proviso to Section 35B(1) of the Central Excise Act, 1944. The JDR argued that the appeal should have been filed with the Joint Secretary under Section 35EE of the Act. The first proviso to Section 35B(1) specifies cases where no appeal shall lie to the Appellate Tribunal, including cases of goods exported outside India without payment of duty. As the goods in this case were cleared for export without duty payment by executing a bond, the Tribunal lacks jurisdiction to entertain or dispose of the appeal.

The Tribunal found the preliminary objection raised by the JDR to be correct based on the provisions of the Central Excise Act, 1944. As per the Act, the appeal in such cases is not maintainable before the Tribunal, and the appropriate remedy lies under Section 35EE of the Act, allowing for a revision application to the Central Government of India. Consequently, the appeal was deemed not maintainable and disposed of accordingly.