2013 (12) TMI 758 - AT - Central Excise

Rebate claim found defective but not informed to the appellant in time Document filed by appellant not looked into Held that - The appellant vouches authenticity of the date chart - interest of justice cannot be paralysed keeping the matter pending in the Tribunal - Prima facie, the date chart aforesaid clearly indicates that there was delay Decided in favour of Assessee.

Summary

Issues:
1. Delay in informing the appellant about defective rebate claims.
2. Failure to look into documents filed by the appellant within the prescribed time frame.
3. Disallowance of interest for delays in granting rebate claims.
4. Compliance with guidelines for rebate claim sanctioning by Central Excise.

Analysis:

1. Delay in Informing Defective Rebate Claims:
The appellant raised concerns regarding the delay in being informed about defective rebate claims. The appellant argued that the authorities did not adhere to the prescribed time frame for notifying them about the deficiencies in their claims. This issue was highlighted in multiple appeals, emphasizing the lack of timely communication from the authorities regarding the status of the rebate claims.

2. Failure to Look Into Documents Within Prescribed Time Frame:
In the detailed analysis of the judgment, it was noted that the appellant submitted necessary clarifications and documents within the specified time limits. However, the authorities failed to review these submissions promptly, leading to delays in processing the rebate claims. The judgment highlighted instances where the appellant complied with the requirements, but the authorities did not act within the prescribed time frame.

3. Disallowance of Interest for Delays in Granting Rebate Claims:
The judgment addressed the issue of interest for delays in granting rebate claims. It was observed that the authorities did not mention any interest for the delays in processing the rebate claims, despite significant delays ranging from 21 to 135 days. The Commissioner (Appeal) disallowed the interest, leading to an appeal by the appellant seeking compensation for the delays caused by the department.

4. Compliance with Guidelines for Rebate Claim Sanctioning:
The judgment referenced guidelines issued by the Central Board of Excise and Customs (CBEC) regarding the sanctioning of rebate claims. The appellant relied on these guidelines to support their argument for timely processing of rebate claims by the authorities. The judgment emphasized the importance of adhering to the prescribed procedures outlined by the CBEC, including the submission of specific documents for filing rebate claims.

In conclusion, the judgment acknowledged the delays and deficiencies in the processing of rebate claims by the authorities. It highlighted the appellant's compliance with the required procedures and the failure of the authorities to act within the specified time frames. The judgment ultimately allowed the appeals, directing the grant of interest to the appellant for the delays caused by the department.