1994 (3) TMI 120 - CGOVT - Central Excise

Summary

Issues involved: Review of order-in-appeal u/r Rule 12 of Central Excise Rules regarding rebate claims.

The Collector of Central Excise & Customs sought review of an order-in-appeal related to rebate claims for Central Excise duty paid on aluminium ingots exported to USSR. The Asstt. Collector rejected the claim citing difficulties in correlating goods cleared and exported. The Collector (Appeals) set aside the Asstt. Collector's orders. The applicant Collector's grounds for review included the need for the respondents to prove eligibility for rebate claims and adherence to procedural requirements. A show cause notice was issued, and the respondents presented their case, referencing relevant legal precedents. The Government reviewed the case, emphasizing that rebate should not be denied for technical breaches and highlighting the authority of Collector (Appeals) to grant relief under Rule 12. However, the order-in-appeal was found to have defects, including lack of conclusive findings on correlation of goods and non-exercise of power to relax procedural conditions. The Government ruled in favor of the respondents' competence to file and receive the claim. Despite the case being suitable for remand, the Government decided to address the issues directly due to the nature of exports. After examining the records and documents, the Government concluded that procedural lapses could be condoned, and the rebate claims were allowed.

In summary, the judgment addressed the review of an order-in-appeal concerning rebate claims under Rule 12 of the Central Excise Rules. It highlighted the importance of not denying rebates for technical breaches and affirmed the authority of Collector (Appeals) to grant relief. The judgment also pointed out deficiencies in the original order-in-appeal, such as the lack of conclusive findings and non-exercise of power to relax procedural conditions. Ultimately, the Government allowed the rebate claims after condoning procedural lapses.