2011 (5) TMI 739 - AT - Central Excise

Interest on rebate claim Held that - rebate claim was allowed by the Joint Secretary (Revision), Since the appeal is against the order-in-appeal passed by Commissioner of Central Excise (appeals), in relation to rebate of duty on exports, the view of the provisions of the first proviso to sec 35 B (1) of the Central Excise Act, 1944, the appeal against this order does not lie before the Tribunal but will lie before the Revisioning authority in the Central Government.Therefore, the appeal of Revenue is dismissed with a liberty to take an appropriate remedy before the Joint Secretary

Summary

Issues:
- Appeal against the interest on rebate claim allowed by lower appellate authority
- Entitlement to interest on rebate claim from the date of the application
- Appeal by Revenue against the order allowing interest on rebate claim
- Jurisdiction of the Tribunal in relation to the order-in-appeal passed by Commissioner of Central Excise

Analysis:

1. The appeal before the Appellate Tribunal CESTAT, Mumbai involved a dispute regarding the interest on a rebate claim filed by the respondent. The lower appellate authority had allowed the interest on the rebate claim, which was challenged by the Revenue. The respondent contended that they were entitled to interest on the rebate claim from the date of the original application.

2. The facts of the case revealed that the rebate claim initially rejected by the adjudicating authority and the lower appellate authority was later allowed by the Joint Secretary (Revision), CBEC. However, the interest on the rebate claim was not paid to the respondent. The respondent sought interest for the period of delay on the rebate claim, which was initially rejected but later allowed by the Commissioner (Appeals), who even granted interest on interest.

3. Upon hearing the submissions, the Tribunal noted that the appeal was against the order-in-appeal passed by the Commissioner of Central Excise (Appeals) concerning the rebate of duty on exports. Referring to the provisions of the first proviso to sec 35 B (1) of the Central Excise Act, 1944, the Tribunal determined that the appeal did not lie before them but before the Revisioning authority in the Central Government. Consequently, the Tribunal dismissed the appeal of the Revenue with the liberty to seek an appropriate remedy before the Joint Secretary (Revision application).

4. The judgment highlighted the jurisdictional aspect of the case, emphasizing that the Tribunal was not the appropriate forum for the appeal against the order-in-appeal related to the rebate claim. By clarifying the legal provisions governing the appeal process, the Tribunal directed the Revenue to pursue the matter before the designated Revisioning authority within the Central Government. This decision underscored the importance of adhering to the statutory framework in addressing disputes related to duty rebates and interest claims, ensuring the proper administration of justice in such matters.