2012 (3) TMI 254 - AT - Customs

Denial of refund claim on grounds not mentioned in the Show Cause Notice SCN issued for denial of refund claim on ground of non-production of relevant document Order rejecting refund passed on ground that the shipping bills are not being challenged - Held that -Whether the appellant was entitled for filing the refund claim or not, is purely a legal issue, which could be examined for the first time at any stage of the proceedings including at the appellate stage, as held in case of National thermal Power Corporation Vs. CIT (1996 - TMI - 5626 - Supreme Court). In our view, both the lower authorities have traveled beyond the allegations made in the SCN hence these orders are not sustainable Decided in favor of assessee.

Summary

Issues:
Refund claim rejection based on non-production of relevant documents. Allegations beyond Show Cause Notice.

Analysis:
The appeal was against the Order-in-Appeal rejecting a refund claim for Corn Gluten Meal due to wrong product classification during a specific period. The jurisdictional authority issued a Show Cause Notice citing reasons for potential rejection, including lack of documentary proof for product classification and absence of original documents with the claim. The adjudicating authority rejected the refund claim, focusing on the assessment of shipping bills. The first appellate authority upheld the rejection, stating that the claim was rejected based on non-production of relevant documents, which were found insufficient upon submission. The appellant argued that the rejection was beyond the Show Cause Notice's scope, citing legal precedents. The Tribunal agreed, noting that the rejection based on unchallenged shipping bills was not part of the original notice, rendering the orders unsustainable. Relying on relevant case law, the Tribunal set aside the impugned order and allowed the appeal, providing consequential relief.