1991 (2) TMI 150 - CGOVT - Central Excise

Summary

Issues:
1. Interpretation of Notification No. 409/86 regarding rebate claims for duty paid on tea.
2. Requirement of gate passes for proof of payment of duty on tea.
3. Consideration of subsidiary documentary evidence for rebate claims.
4. Interpretation of various Trade Notices and notifications for rebate claims on tea purchased in auctions.

Detailed Analysis:
1. The judgment deals with a review proposal challenging an order-in-appeal regarding rebate claims for duty paid on tea used in blended tea exported after a specific date as per Notification No. 409/86. The Collector rejected the rebate claims due to the absence of gate passes as statutory documents for proof of duty payment. The Collector (Appeals) remitted the case with a direction based on subsidiary documentary evidence.

2. The Collector (Appeals) based the impugned order on an earlier order-in-appeal, considering Notification No. 16/88 and Cochin Collectorate Trade Notice No. 184/86. The review proposal questioned the interpretation of clause (5) of Notification No. 409/86 by the Collector of Central Excise, Bangalore, emphasizing the necessity of gate passes for determining duty payment conditions.

3. The interpretation of Trade Notices and notifications for cases involving tea purchased in auctions was crucial. Notification No. 16/88 specified the requirement of details as per broker's certificate for tea purchased in auctions, not mandating original gate passes. Cochin Collectorate Trade Notice 184/86 outlined specific document requirements for blended tea export, while Notification No. 151/88 differentiated document annexation based on tea purchase method.

4. The Government clarified that in cases of tea purchased in auctions, the insistence on gate passes is not mandatory. The judgment affirmed the Collector's decision, stating that gate passes are not required for tea purchased in auctions. However, it emphasized the need to observe other parameters and requirements of relevant notifications for both parties and the Assistant Collector.