2016 (12) TMI 709 - AT - Central Excise

Maintainability of appeal - Section 35B of the Central Excise Act, 1944 - whether the Tribunal can entertain an appeal from any order which relates to an order of rebate? - Held that - it is clear that the Tribunal does not have jurisdiction to decide any appeal in respect of an order passed by the Commissioner (Appeals) if the order relates to rebate of duty of Excise. Even though the issue is only with regard interest on rebate, interest being a compensation for delay or denial of legitmate amount, I am of the view that it is integrally connected to the issue of rebate. From the above, I hold that the appeal is not maintainable for the reason that Tribunal has no jurisdiction to decide the appeal. The appellant however can persue the remedy before appropriate forum as they have been contesting before a wrong forum - The appeal is dismissed - decided against appellant.

Summary

Issues:
Appeal against order denying interest on rebate granted.

Analysis:
The appellant filed an appeal against the order passed by the Commissioner (Appeals) alleging that interest upon the rebate granted was not allowed. The Ld. AR representing the department argued that as per the proviso to Section 35B of the Central Excise Act, 1944, the Tribunal lacks jurisdiction to entertain an appeal related to an order of rebate. The Ld. Counsel for the appellant contended that the issue in question pertained to the claim of interest not allowed during the rebate grant, not the grant of rebate itself.

Upon examining the proviso to Section 35B of the Central Excise Act, 1944, the Member (Judicial) agreed with the argument presented by the Ld. AR. The relevant portion of Section 35B delineates the orders against which an appeal can be made to the Appellate Tribunal. It specifies that no appeal shall lie to the Tribunal if the order relates to a case of loss of goods in transit, rebate of duty of excise on exported goods, or other specified scenarios, including rebate of duty of excise. Despite the appellant's claim that the issue was solely about interest on rebate, the Member (Judicial) opined that interest is intricately linked to the rebate issue, as it compensates for delays or denials of legitimate amounts. Consequently, the appeal was deemed not maintainable due to lack of jurisdiction by the Tribunal to decide on matters related to rebate. The appellant was advised to seek remedy before the appropriate forum, as contesting in the current forum was deemed incorrect. Therefore, the appeal was dismissed.