2004 (8) TMI 232 - AT - Central Excise

Summary

Issues:
1. Incorrect exchange rate used for duty assessment
2. Refund claim calculation mistake
3. Claim rejection based on time limitation
4. Discrepancy between different Commissioners' decisions

Analysis:
1. The appellant imported Steel Bars and sought clearance under a specific Bill of Entry. The duty was assessed using the wrong exchange rate, resulting in an overpayment. The appellant initially claimed a refund of Rs. 1,71,426, but later requested Rs. 2,94,366.57, including the CVD portion. The Assistant Commissioner only sanctioned the original claim amount. The Commissioner of Customs (Appeals) remanded the matter, acknowledging the calculation error and the admissibility of the CVD refund. The lower appellate authority rejected the claim as time-barred, leading to another appeal.

2. The second Commissioner (Appeals) held that the later refund claim was not a formal application and cited time limitation under Section 27 of the Customs Act. The appellant argued that the first Commissioner (Appeals) decision should have been followed, as it was not appealed by the department and had attained finality. The current Commissioner (Appeals) erred in upholding the lower authority's decision based on time limitation, disregarding the previous decision on admissibility.

3. The Tribunal found it improper for different Commissioners to reach conflicting conclusions in the same case. The first Commissioner's decision on admissibility should have been respected, and subsequent proceedings were deemed legally flawed. Therefore, the Tribunal allowed the appeal, granting consequential relief in accordance with the law and emphasizing the finality of the initial decision on refund admissibility.