2010 (10) TMI 982 - AT - Central Excise

Summary

Issues:
Refund claim rejection based on locational eligibility criteria under Notification No. 56/2002-C.E.

Analysis:
The issue in this case revolves around the rejection of a refund claim by the adjudicating authority based on the locational eligibility criteria under Notification No. 56/2002-C.E. The authority rejected the claim citing that the village mentioned in the certificate issued by the Tehsildar did not align with the village specified in the notification. However, the Commissioner (Appeals) took a different stance, noting that the certificate indeed certified the fulfillment of locational eligibility criteria. The key discrepancy lies in the interpretation of whether the village mentioned in the certificate falls within the purview of the notification.

Upon examining the notification, it was observed that the village "Narwal Pain" was not explicitly included in the area covered by the notification. This discrepancy raised doubts regarding the inclusion of the village Narwal in the notification's scope. The Tribunal noted that prima facie, the appellants had presented a case supporting the grant of a stay on the impugned order, as the area in which the village Narwal is situated does not seem to be part of the notification. Consequently, the Tribunal allowed the application, staying the impugned order until the appeal is resolved.

In conclusion, the Tribunal's decision hinged on the interpretation of the locational eligibility criteria under Notification No. 56/2002-C.E. The discrepancy between the village mentioned in the certificate and the village specified in the notification led to conflicting views by the adjudicating authority and the Commissioner (Appeals). The Tribunal, after a detailed analysis, found merit in the appellant's argument regarding the prima facie case for granting a stay on the impugned order, ultimately leading to the decision to stay the order until the appeal is decided.