2008 (5) TMI 539 - AT - Central Excise

Summary

Issues:
The appeal involves the rejection of a claim for rebate of Rs. 2,38,130.32 filed by the appellants u/s Notification 146/74 dated 12-10-1974 for excess production of sugar during the 1974-75 season.

Summary:

Issue 1: Calculation of Rebate
The appellants claimed rebate for excess sugar production in the 1974-75 season, which was rejected by the Commissioner (Appeals) on the basis that rebate should be calculated with reference to average production determined, not in terms of percentage with reference to excess quantity produced. The Revision Authority and the High Court upheld this decision. However, in 1996, the Supreme Court ruled that rebate should be based on the percentage of excess production. Subsequently, the appellants filed a refund claim for the remaining amount, which was rejected by the Assistant Commissioner and the Commissioner (Appeals) on the grounds of finality of the previous partial refund order and the scope of the apex court's decision.

Decision:
After considering both sides, it was found that the appeal lacked merit as the appellants did not challenge the previous order sanctioning only a partial refund. The Tribunal held that the Supreme Court's decision only pertained to the calculation method of rebate and not the issue of granting rebate for duty-free sugar export. Consequently, the claim for refund was rightly rejected, and the impugned order was upheld, leading to the dismissal of the appeal.