2008 (4) TMI 549 - AT - Central Excise

Summary

Issues:
1. Revision of assessable value and payment of differential duty for the years 1997-98 and 1998-99.
2. Rejection of Certificate 'A' for the differential duty paid for the year 1997-98.
3. Appeal against rejection of refund claim and issuance of Certificate 'A' under Rule 57E.
4. Validity of the direction for issuance of Certificate 'A' by the lower appellate authority.
5. Allegations of suppression of facts by the assessee and arbitrariness in rejecting the request for Certificate 'A'.

Analysis:
1. The respondents revised the assessable value of goods for 1997-98, paying differential duty of Rs. 23,00,420 and Rs. 1,63,187 for 1998-99. They obtained Certificate 'A' for the latter but were denied the same for the former. The appeal concerns the rejection of refund claim and the subsequent direction for Certificate 'A' issuance by the lower appellate authority.

2. The Assistant Commissioner allowed the transfer of credit for the duty paid in 1997-98 to a sister unit under Rule 57E. The Revenue contended that the direction for Certificate 'A' was beyond the appeal's scope and alleged suppression of facts. The Tribunal found the rejection of the 1997-98 certificate request arbitrary, as a similar request for 1998-99 was granted. The lower appellate authority rectified this inconsistency, leading to the issuance of the certificate for 1997-98, satisfying the assessee and negating the refund claim.

3. The Tribunal dismissed the Revenue's appeal, emphasizing that had the original authority issued the certificate for 1997-98 initially, there would have been no refund claim. The arbitrariness in rejecting the certificate request was rectified by the lower appellate authority, resolving the issue. The Tribunal found no merit in the Revenue's arguments regarding suppression of facts and upheld the lower authority's decision to issue the Certificate 'A' under Rule 57E for the differential duty paid in 1997-98.

Conclusion:
The Tribunal upheld the lower appellate authority's decision to issue Certificate 'A' under Rule 57E for the differential duty paid in 1997-98, resolving the issue of the rejected refund claim. The appeal by the Revenue was dismissed, highlighting the removal of arbitrariness in the certificate issuance process and the satisfaction of the assessee with the granted certificate, eliminating the need for a refund.