2007 (9) TMI 278 - HC - Central Excise

Summary

Issues involved: Challenge to order of CESTAT allowing appeal by Revenue against Commissioner of Central Excise (A) order granting refund.

Details of the judgment:

1. The petitioner filed a refund claim, which was partially rejected by the adjudicating authority.

2. Commissioner of Central Excise (A) held that the petitioner is entitled to a refund, which was challenged by the Revenue in an appeal before CESTAT.

3. CESTAT allowed the appeal filed by the Revenue, leading to the filing of the present petition to challenge the Tribunal's order.

4. The main issue before the Tribunal was the justification of the refund granted by the Commissioner of Central Excise (A).

5. The Tribunal disposed of two appeals filed by the Revenue without considering the merits of the case or providing an opportunity for both parties to be heard.

6. The petitioner argued that the Tribunal's order violated the principles of natural justice as there was no allegation in the show cause notice regarding the availing of duty drawback/rebate.

7. The Court found that the petitioner was specifically called upon in the show cause notice to justify the refund claim in light of availing duty drawback/rebate, thus rejecting the argument of violation of natural justice.

8. Despite this, the Court set aside the Tribunal's order and directed a fresh consideration of both appeals, emphasizing the need for a proper hearing and review of the adjudication orders.

9. The petition was allowed, the impugned order was set aside, and the matter was remanded back to CESTAT for a decision on merits and in accordance with the law, with all contentions of both parties kept open.

10. The petition was disposed of without any order as to costs.