2017 (7) TMI 518 - AT - Central Excise

Rectification of mistake - applicant pointed out that an error has crept in the said order insofar as the applicant s contention that it was of a revenue neutral situation was not appreciated, insofar as the goods cleared on payment of duty within the first clearances of 3500 MT were also eligible to the benefit of the said notification - Held that - From the order-in-original, it can be seen that the goods cleared on payment of duty within the first clearance of 3500 were otherwise also eligible for Notification 3/2001 dated 1.3.2001. This being the case, it would result in a revenue neutral situation and thus the distinction made in para 6 of the order dated 23.2.2017 does not survive. Consequently necessary rectification made - ROM allowed.

Summary

Issues:
Rectification of mistake applications regarding Tribunal's order dated 23.2.2017.

Analysis:

Issue 1: Error in Tribunal's order regarding revenue neutral situation
- The applicants filed rectification of mistake applications concerning Tribunal's order dated 23.2.2017. The applicants contended that an error existed in the order as their argument about a revenue neutral situation was not acknowledged. Specifically, they highlighted that goods cleared on payment of duty within the initial clearances of 3500 MT were also eligible for notification benefits. The order seemed to have misunderstood this aspect, assuming that such goods were not eligible for exemption. Reference was made to specific observations in the order-in-original regarding the types of paper manufactured and cleared under exemption.

Issue 2: Tribunal's decision and rectification
- The learned counsel for the applicant emphasized the need for rectification due to the misinterpretation in the Tribunal's order. The Tribunal, upon considering the submissions, recognized the error and distinguished its earlier decision on similar grounds. It was noted that goods cleared on payment of duty within the initial 3500 MT were indeed eligible for the notification. This correction led to a conclusion of a revenue neutral situation, aligning with previous Tribunal decisions. Consequently, paragraphs in the order were replaced to reflect this understanding based on past judgments.

Issue 3: Reliance on previous Tribunal order
- The learned AR relied on the Tribunal's order from 23.2.2017, indicating a reliance on the previous decision. The Tribunal's analysis highlighted the importance of consistency in interpreting the revenue implications of duty payments within the specified limits. The reliance on past judgments and the alignment with apex court decisions further solidified the position that the rectification sought by the applicants was warranted.

Conclusion:
- The rectification of mistake applications was accepted, and the Tribunal's order from 23.2.2017 was modified to rectify the error regarding the revenue neutral situation. By aligning with past decisions and legal principles, the Tribunal ensured a fair and accurate interpretation of the exemption notification, ultimately leading to the dismissal of the revenue appeals. The pronouncement of the judgment on 28.6.2017 marked the resolution of the rectification applications in this matter.