1995 (9) TMI 182 - AT - Central Excise

Summary

Issues:
1. Validity of modvat credit availed by respondents.
2. Enforcement of demand by Superintendent.
3. Refund claim by respondents.
4. Grounds of appeal by revenue.
5. Consequential relief ordered by Tribunal.
6. Unjust enrichment argument by revenue.

Analysis:
The appeal before the Appellate Tribunal CEGAT, Bombay concerned the validity of modvat credit availed by the respondents. The Department objected to the modvat credit claimed by the respondents, leading to a demand of Rs. 20,326.78 by the Superintendent. The respondents approached the Collector (Appeals) against the demand, which was rejected as no appeal was filed against the assessment order. The Tribunal, in a previous order, held that the demand cannot be enforced without a show cause notice and ruled in favor of the respondents. The respondents paid the duty under protest and later claimed a refund, which was initially rejected by the Asstt. Collector but allowed by the Collector (Appeals), leading to the present appeal by the revenue.

The first issue addressed by the Tribunal was the time-barred nature of the refund claim by the respondents. The Tribunal found that the demand was contested at every stage by the respondents, and the payment made was to comply with statutory requirements for filing an appeal. Therefore, the refund claim was not time-barred as the demand was set aside due to illegality.

The second issue involved the grounds of appeal filed by the revenue. The revenue argued that the Tribunal did not order consequential relief and that the refund claim was hit by time bar. However, the Tribunal clarified that any payment made pursuant to a demand set aside for illegality must be refunded, regardless of the time elapsed. The revenue's argument of unjust enrichment was also dismissed, as there was no evidence that the demand paid by the respondents was recovered beyond the duty already paid.

In conclusion, the Tribunal advised the Department to refrain from recycling the same issue repeatedly to deny benefits granted by the Tribunal through appellate orders. The Tribunal emphasized that if the Department disagreed with the Tribunal's decision, they should make a reference application instead of subjecting the assesses to multiple adjudications. Ultimately, the appeal from the revenue was rejected.