2007 (5) TMI 537 - AT - Central Excise

Summary

Issues:
Application for rectification of mistake against the Tribunal's order dated 6-11-2006.

Analysis:
The applicant sought rectification of a mistake in the Tribunal's order based on the judgment of the Hon'ble Supreme Court in a specific case. The Supreme Court had addressed the issue of whether an assessee was obligated to avail exemption or could forgo it to claim Modvat credit, ruling in favor of the assessee due to the technical nature of the matter and lack of revenue implications. The applicant argued that the Tribunal's order contradicted the Supreme Court's decision. However, the Tribunal noted a change in law through an amendment to Section 5A of the Central Excise Act, effective from 13-5-2005. This amendment clarified that when goods were unconditionally exempted, the manufacturer was not required to pay duty. The Tribunal found the amendment to be clarificatory and considered it in the context of the case. Consequently, the Tribunal concluded that its decision of 6-11-2006 was made in light of the legal changes post the Supreme Court's judgment, and hence, no error or mistake was found on record. The Tribunal also highlighted that the order was subject to further appellate remedies, leading to the rejection of the application for rectification of mistake.

This analysis demonstrates that the Tribunal carefully considered the legal developments, including the Supreme Court judgment and subsequent legislative amendments, to determine the correctness of its decision. The Tribunal's reasoning focused on the clarificatory nature of the amendment to Section 5A of the Central Excise Act and its impact on the case at hand. By emphasizing the post-judgment legal changes and the availability of further appellate remedies, the Tribunal provided a thorough and reasoned explanation for rejecting the application for rectification of mistake.