2008 (9) TMI 802 - AT - Central Excise

Summary

Issues involved: Recovery of erroneously refunded duty u/s 11A of Central Excise Act.

Issue 1: Background of the case

The appellants filed refund claims which were sanctioned by the adjudicating authority. The Revenue, dissatisfied with the refund orders, appealed to the Commissioner (Appeals) who set aside the Orders-in-Original. The appellants, aggrieved by this decision, appealed to the Tribunal.

Details: The appellants filed refund claims which were sanctioned by the adjudicating authority. The Revenue appealed to the Commissioner (Appeals) who set aside the Orders-in-Original. The appellants then appealed to the Tribunal.

Issue 2: Requirement of show cause notice for recovery

The appellant argued that the Revenue should have issued a show cause notice for recovery of erroneously refunded amounts, as per legal provisions and precedents like Morarjee Goculdas Spg. & Wvg. v. CCE, Mumbai-I and Circular No. 4233/56/98-CX issued by CBEC.

Details: The appellant contended that the Revenue should have issued a show cause notice for recovery of erroneously refunded amounts, citing legal provisions and relevant precedents.

Issue 3: Legal provisions and precedents

The Tribunal referred to Section 11A of the Central Excise Act, which mandates the issuance of a show cause notice for recovery of erroneous refunds. The decision in Morarjee Goculdas Spg. & Wvg. case and Circular No. 4233/56/98-CX were relied upon to support the requirement of a show cause notice for recovery.

Details: The Tribunal cited Section 11A of the Central Excise Act and relevant precedents to emphasize the necessity of a show cause notice for recovery of erroneous refunds.

Issue 4: Tribunal's decision

The Tribunal, following the legal provisions and precedents, set aside the decision of the Commissioner (Appeals) and allowed the appeals of the appellants, granting consequential relief.

Details: The Tribunal set aside the decision of the Commissioner (Appeals) and allowed the appeals of the appellants, granting consequential relief.

This summary provides a detailed overview of the legal judgment regarding the recovery of erroneously refunded duty under Section 11A of the Central Excise Act, highlighting the arguments presented, legal provisions cited, and the final decision of the Tribunal.