2007 (9) TMI 200 - AT - Central Excise

Application for rectification of mistake - issue involved in this case is as to whether Rule 57CC of the erstwhile Central Excise Rules, 1944 is applicable in respect of clearance of Begasse emerging during the manufacture of sugar - issue has been settled by the decision of the Hon ble Supreme Court in favour of the assessee In remand proceedings Comm.. (A) did not follow & consider decision of SC application is allowed

Summary

Issues:
Rectification of mistake in Final Order regarding the applicability of Rule 57CC of the Central Excise Rules, 1944 on clearance of Begasse during sugar manufacturing.

Analysis:
The respondents sought rectification of mistake in Final Order No. 743-744 of 2007 related to the application of Rule 57CC of the Central Excise Rules, 1944 concerning the clearance of Begasse during sugar production. The issue was whether Rule 57CC applied in this scenario. The Tribunal had remanded the matter to the Commissioner (Appeals) for reconsideration in light of the decision in the case of Rallies India Ltd. v. CCE, Salem and the Tribunal's decision in the case of CCE., Lucknow v. M/s. Seksaria Biswan Sugar Factory Pvt. Ltd. The Larger Bench decision in Hindustan Lever Ltd. v. CCE, Mumbai-I emphasized rectification of mistakes when Supreme Court decisions were not considered.

The Departmental Representative (DR) argued that the Tribunal correctly followed the Larger Bench decision and that there was no need for rectification. The matter had been referred back to the Commissioner (Appeals), making interference with the Tribunal's order unnecessary. After hearing both parties, the Member (J) found merit in the respondent's advocate's submission. The Tribunal's decision in the case of CCE., Lucknow v. M/s. Seksaria Biswan Sugar Factory Pvt. Ltd. favored the assessee, aligning with the Division Bench's ruling in the case of Shakumbari Sugar & Allied Industries Ltd., upheld by the Supreme Court. Referring to the Larger Bench's judgment in Hindustan Lever Ltd. v. CCE, Mumbai, it was noted that rectification was required when Supreme Court decisions were overlooked. As the issue had been settled in favor of the assessee by the Supreme Court's decision in the case of M/s. Shakumbari Sugar & Allied Industries Ltd., the paragraph in the Final Order was modified accordingly.

Consequently, the miscellaneous applications for rectification of mistake in the Final Order dated 10-4-2007 were allowed, and the paragraph in question was amended as per the decision of the Tribunal and the Supreme Court. The order was dictated and pronounced in open court on 28-9-2007.