2010 (8) TMI 903 - AT - Central Excise

Summary

Issues:
Application for reference of questions of law arising out of Tribunal's order dated 14-3-2003.

Analysis:
The case involves a miscellaneous application seeking reference of questions of law from an order passed by the Tribunal. The High Court granted liberty to apply for reference within a specified time frame. The points of law sought to be formulated by the applicants relate to the determination of duty payable by them. The JCDR argued that the reference is not maintainable as it pertains to duty liability. The Tribunal's order highlighted the duty liability issue concerning the receipt of duty-free goods for export but not exported, leading to duty payment when cleared for domestic consumption. The relevant legal provisions, Section 35L(b) and Section 35H(1) of the Central Excise Act, outline the scope of reference applications based on duty determination or assessment value. The Tribunal's order clearly pertains to the rate of duty liability, making the reference application inappropriate.

The Tribunal emphasized that reference applications can only be entertained if they do not relate to duty determination or value assessment. The High Court's direction to decide the matter on merits does not permit contravention of statutory provisions. Referring to a Supreme Court decision, the Tribunal reiterated that authorities must act in accordance with the law and cannot be directed to act contrary to statutory provisions. Misinterpreting the High Court's order to allow reference on duty-related matters would be erroneous. Consequently, considering the clarity of the law and the High Court's direction, the Tribunal found the application for reference not maintainable and dismissed it.