2010 (10) TMI 1145 - AT - Central Excise

Summary

Issues involved: Refund claim of duty paid on cement and steel by an NGO for construction of houses in Tsunami affected districts of Tamil Nadu; Challenge by Revenue regarding remand of refund claims by Commissioner (Appeals).

Refund Claim of Duty Paid on Cement and Steel:
The appellants, an NGO, sought a higher refund of duty paid on cement and steel used in construction of houses for Tsunami affected districts of Tamil Nadu, citing Notification No. 32/05. However, the Tribunal referred to its earlier order which clarified that the exemption for duty paid on cement and steel is limited to 6% of the cost of construction or Rs. 9000 per house, as specified in the Notification. The Tribunal upheld the decision to restrict the refund to the duty paid on cement and steel, as it did not exceed the prescribed limits.

Revenue's Challenge on Remand of Refund Claims:
The Revenue challenged the direction of the Commissioner (Appeals) to remand the matter to the Assistant Commissioner for processing the NGO's refund claims based on submitted documents. The Revenue argued that post the amendment to Section 35A (3) of the Central Excise Act, the Commissioner (Appeals) lacked the authority to remand cases.

The Tribunal noted that the Revenue did not contest the admissibility of the refund on merits. Consequently, the Commissioner (Appeals) was deemed justified in instructing the Assistant Commissioner to evaluate the refund claims of the NGO based on the provided documentation and to grant refunds if found eligible. The Tribunal upheld the decision of the Commissioner (Appeals) and dismissed the Revenue's appeal.