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Issues:
Whether an appeal was maintainable under the Central Excise & Salt Act, 1944 against a communication issued by the Assistant Collector of Central Excise? Analysis: The petitioners, engaged in manufacturing needle roller cages, filed a revised classification list for their goods under Tariff Item 68 of the Excise Tariff, seeking a refund of excise duty. The refund claim was initially rejected but later allowed by the Assistant Collector. Subsequently, a notice was issued for recovery of the refunded amount, leading to an appeal filed by the Revenue challenging the refund order. The Collector of Central Excise (Appeals) set aside the refund order, stating that the duty paid prior to the revised classification list was not covered by the Tribunal's decision. The petitioners contended that the appeal was not maintainable as no appealable order was passed by the Assistant Collector, only a communication was issued. However, the court held that the refund order was valid and appealable, allowing the Collector to review and file an appeal against it. The court further emphasized that duty paid based on an approved classification list remains valid until a show cause notice challenges the classification. In this case, the goods were classified under Tariff Item 49 until a revised classification under Tariff Item 68 was approved. The Collector (Appeals) correctly determined that the refund for the period before the revised classification was erroneous and must be returned to the revenue. Additionally, the petitioners' second refund application for the same period, after the initial rejection, was deemed inadmissible. The court also cited a Supreme Court decision supporting the review and appeal against a communication if a refund is found to be erroneous. In this context, the court concluded that the communication dated 12-12-1986, considered a refund order, could be reviewed and appealed before the Collector of Central Excise (Appeals). Consequently, the court dismissed the petition, allowing the Excise Authorities to recover the erroneously refunded amount with interest. No costs were awarded in this case.
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