9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2006 (2) TMI 49 - AT - Central ExciseCentral Excise Cenvat/Modvat Wrong facts mentioned in the reply of SCN by the party cannot be the basis of rejecting the refund application under Rule 5 of the Cenvat Credit Rules 2002, if otherwise application is valid Matter remanded
Issues:
Refund claim rejection based on irrelevant grounds Analysis: The appellants, engaged in manufacturing and exporting cotton fabrics and made-ups, had an accumulated duty credit in their CEN VAT account which they could not utilize due to exporting their products. They filed a refund claim under Rule 5 of the Cenvat Credit Rules, 2002. The Department proposed to reject the claim citing reasons like the absence of necessary bond for export and failure to provide calculations for inputs in the exported goods. The original authority rejected the refund claim based on the party's reply, which mentioned claiming rebate under Rule 18 of the Central Excise Rules, 2002, instead of Rule 5 of the Cenvat Credit Rules, 2002. The Commissioner (Appeals) affirmed this decision, leading to the present appeal. The counsel for the appellants argued that the refund claim rejection was based on extraneous grounds not mentioned in the show-cause notice. The Tribunal found that both lower authorities focused on irrelevant aspects of the party's reply. The Tribunal noted that the party's actual claim was made under Rule 5 of the Cenvat Credit Rules, 2002, and not Rule 18 of the Central Excise Rules, 2002 as mentioned in their reply. The Tribunal observed that the refund application was correctly filed under Rule 5 and directed the original authority to reconsider the claim based on this rule, disregarding irrelevant statements in the party's reply. In conclusion, the Tribunal set aside the orders of the lower authorities and remanded the matter to the original authority for a fresh decision on the refund claim under Rule 5 of the Cenvat Credit Rules, 2002. The Tribunal emphasized that any statements in the party's reply unrelated to the allegations in the show-cause notice should be considered irrelevant. It was also highlighted that both parties should be given a fair opportunity to present their case during the adjudication process.
|
