2006 (2) TMI 164 - AT - Central Excise

Letter issued by department is decision and is appealable - Commissioner (Appeals) not correct in holding that letter rejecting refund is not an appealable order - Such communications are appealable orders - Request made by a letter - Department rejected by way of a letter - No prescribed format for such refund application - Matter remitted to original authority to reconsider

Summary

Issues: Appeal against the rejection of refund application based on a communication from the Dy. Commissioner, remand of the matter for consideration as a refund application.

Analysis:
1. Issue of Appeal Against Rejection of Refund Application: The appeal in question arose from the rejection of a refund application by the Commissioner (A) based on a communication from the Dy. Commissioner. The appellant contended that their letter dated 9-1-2004 should be considered as a refund application, as the duty deposit was a mistake of law. The Tribunal referred to a previous judgment involving Indian Explosives Limited, where a decision on a letter for refund was treated as an order by the adjudicating authority and deemed appealable under Section 35 of the Central Excise Act. The Tribunal found that the Dy. Commissioner's communication should have been treated as a decision or order, making it appealable. Consequently, the appeal was allowed, and the matter was remanded to the Original Authority for consideration as a refund application.

2. Remand of the Matter for Consideration as a Refund Application: The Tribunal observed that there was no prescribed format for filing a refund application, and the appellants had made a request for refund through their letter dated 9-1-2004. The Dy. Commissioner's action of returning the claim for refund without a hearing was deemed unjustified. The Commissioner (A) was also criticized for rejecting the appeal based on the belief that the Dy. Commissioner's communication was not appealable. The Tribunal emphasized that the communication should have been treated as a decision or order by the adjudicating authority, following the precedent set by the Indian Explosives Limited case. Therefore, the matter was remanded to the Original Authority with a directive to consider the refund request in the appellants' letter and make a decision within four months while ensuring the principles of natural justice were upheld. The appeal was allowed through remand to the Original Authority for further proceedings.

In conclusion, the judgment by the Appellate Tribunal CESTAT, Bangalore addressed the issues of appeal against the rejection of a refund application and the remand of the matter for consideration as a refund application. The Tribunal emphasized the importance of treating communications from adjudicating authorities as appealable decisions, following established legal precedents. The decision highlighted the need for fair consideration of refund requests and adherence to principles of natural justice in such matters.