2008 (1) TMI 238 - AT - Central Excise

Rebate claim filed by the appellants was entertained by the original authority & rebate sanctioned - order of the original authority was not found to be defective except for the lack of jurisdiction - a different Assistant Commissioner sanctioning the refund claim involves only an administrative adjustment of funds disbursed as rebate for statistical purposes hence rebate sanctioned by original authority can not be challenged by dept. only on ground of jurisdiction assessee s appeal allowed

Summary

Issues:
Jurisdiction of the authority to sanction rebate claim under Rule 18 of Central Excise Rules, 2002 read with Section 11 B of the Central Excise Act, 1944.

Analysis:
The appellants, M/s. TAFE Limited, Chennai, had exported Hydraulic Pumps manufactured by its sister concern, M/s. TAFE Access Ltd. The rebate claim of Rs. 4,31,005/- was sanctioned by the jurisdictional Assistant Commissioner of the appellant's unit. However, the rebate was sanctioned by the Assistant Commissioner of a different Commissionerate, leading to a dispute regarding jurisdiction. The Commissioner (Appeals) held that the refund was beyond the jurisdiction and directed the lower authority to forward the records to the appropriate authority for further disposal. The Ld. Counsel for the appellants argued that the order of the original authority sanctioning the rebate was valid and did not entail any erroneous refund, except for the jurisdictional issue.

The Tribunal considered the submissions and found that while the original authority lacked jurisdiction, the rebate claim was found to be in order otherwise. The Tribunal noted that approaching the jurisdictional Assistant Commissioner of the manufacturer for the same exercise would be of no material consequence. It was also highlighted that a similar sanction order in a claim of similar facts had been accepted by the department without any appeal. Therefore, the Tribunal allowed the appeal filed by TAFE, restoring the original order sanctioning the rebate claim.

In conclusion, the Tribunal addressed the jurisdictional issue regarding the sanctioning of the rebate claim under Rule 18 of the Central Excise Rules, 2002. Despite the lack of jurisdiction by the original authority, the Tribunal found the rebate claim to be in order and allowed the appeal filed by the appellants, restoring the original order sanctioning the rebate claim.