2009 (3) TMI 742 - AT - Central Excise

Summary

Issues involved:
The issues involved in the judgment are related to the refund claim filed by the appellants after depositing amounts towards wrongly availed drawbacks without any show cause notice being issued for recovery, and the subsequent appeal by Revenue challenging the refund claim.

Summary:

Issue 1: Refund claim and absence of show cause notice
The appellant, a textile manufacturer, deposited amounts without any show cause notice for wrongly availed drawbacks. The original adjudicating authority sanctioned the refund, but the Commissioner (Appeals) allowed Revenue's appeal. The advocate cited a similar case before the Hon'ble High Court of Gujarat and this Tribunal. The Hon'ble High Court directed the department to sanction the refund, which was agreed upon by the Revenue.

Issue 2: Waiver of pre-deposit under Section 35F
The Tribunal considered the submissions and noted the absence of any show cause notice for six years. The Tribunal referred to a decision of the Hon'ble High Court of Gujarat in a similar case, emphasizing the lapse on the part of the Revenue. The Tribunal waived the requirement of pre-deposit under Section 35F and disposed off the appeal in favor of the appellant, setting aside the orders of the Commissioner (Appeals) for both appellants.

This judgment highlights the importance of following due process in recovery matters and the significance of legal precedents in similar cases.