1983 (8) TMI 259 - AT - Central Excise

Summary

Issues: Dispute over levy of excise duty on "Tread Gum" product, interpretation of Order-in-Revision, jurisdiction of lower authorities to examine refund claims with reference to Rule 11.

Analysis:

The judgment by the Appellate Tribunal CEGAT NEW DELHI involved a dispute regarding the levy of excise duty on a product called "Tread Gum" manufactured by the appellants between 1962 and 1971. The appellants contended that the product was not chargeable with excise duty during that period. The matter had a complex history involving various stages such as a claim, appeal, Revision Application, a Writ petition in the Madras High Court, and orders by the revisional authority. The case eventually reached the Tribunal as transferred proceedings under Section 35P of the Central Excises and Salt Act.

The central issue revolved around the interpretation of the Order-in-Revision dated 2-11-1970 passed by the Government of India, which directed the grant of consequential relief to the appellants. The appellants argued that the order was unqualified and unconditional, and the lower authorities had overstepped their jurisdiction by interpreting the expression "consequential relief" in a restrictive manner. They contended that all aspects of the claim had been considered by the revisional authority, and there was no justification for the lower authorities to reexamine the refund claims with reference to Rule 11.

The Respondent, represented by Smt. Vijay Zutshi, defended the orders of the lower authorities, maintaining that their actions were justified in light of the circumstances and legal provisions. However, after considering the submissions of both parties and examining the facts and circumstances of the case, the Tribunal held that the Order-in-Revision was unambiguous and did not warrant reinterpretation by the lower authorities. The Tribunal concluded that the lower authorities had exceeded their jurisdiction by scrutinizing the refund claims afresh with reference to Rule 11.

Consequently, the Tribunal directed the concerned Asstt. Collector of Central Excise to process the remaining part of the refund claims of the appellants and make payments within three months from the date of the order. The Tribunal expressed hope that this decision would bring an end to the prolonged legal saga surrounding the dispute over excise duty on the "Tread Gum" product, thereby bringing closure to the protracted legal proceedings.