1998 (12) TMI 142 - AT - Central Excise

Summary

Issues:
1. Condonation of delay in filing the appeal before the Tribunal.
2. Merits of the case regarding the recrediting of a certain amount by the respondents.

Condonation of Delay:
The Revenue filed an appeal against the Order of the Commissioner (Appeals) regarding the recredit of an amount in the respondent's RG 23A Part II Account. The Department also applied for condonation of a six-day delay in filing the appeal. The delay was attributed to the complexity of the matter, requiring referral to the Principal Collector for directions. The Tribunal, after considering the explanation for the delay, condoned the delay and allowed the Condonation of Delay Application.

Merits of the Case - Recrediting Issue:
The main issue revolved around the recrediting of an amount by the respondents without waiting for a formal order from the Asstt. Collector. The Department argued that the recredit was unauthorized as per the conditions laid down in the Asstt. Collector's letter. The respondents contended that since their refund claim had already been sanctioned, the recredit was a mere formality. The Tribunal analyzed the Asstt. Collector's letter, emphasizing the requirement for a separate order for recredit, which was not issued. Thus, the Tribunal held that the respondents' action of recrediting the amount without the formal order was not legal. Consequently, the Collector (Appeals) order was set aside, and the Departmental Appeal was allowed.

Direction for Expedited Action:
The Tribunal acknowledged the prolonged pendency of the matter and directed the Asstt. Collector to issue necessary orders promptly regarding the refund claim, which pertained to a specific period. This directive aimed to ensure the resolution of the matter in accordance with the law without further delay.