2014 (1) TMI 1 - AT - Central Excise

Application for rectification - Held that - The definite finding has been given by the Tribunal on applicability of the decision in the case of Nirma Ltd. In respect of CT-2 Certificates - They were proceeded by verification and that the cancellation of the certificates by the Superintendent who issued the certificates without following the principle of natural justice is arbitrary - It has also been recorded that if the material procured on payment of duty, the appellants were eligible for rebate of duty paid - A reasoned and speaking order has been issued - There is no error apparent on the face of records - Decided against Revenue.

Summary

Issues:
Rectification of mistake in the Final Order dated 28-1-2010 regarding the procurement of CT-2 certificates and application for recall of the order.

Analysis:
The judgment pertains to an application for rectification of a mistake in the Final Order No. 184/2010-SM(BR) dated 28-1-2010. The department sought rectification based on the contention that the assessee had procured CT-2 certificates under the presumption that the supplier had an Advance Intermediate Licence, which was not the case. The department argued that this was a substantial lapse, not a procedural one, and hence, the decision in the case of Nirma Ltd. did not apply. The Tribunal, after hearing both sides, emphasized that rectification of mistake is limited to errors apparent on the face of records. It was noted that the decision in the Nirma Ltd. case was correctly applied, with a specific finding provided in the order. The issue of CT-2 certificates obtained without disclosing the supplier's status was discussed in detail, highlighting that the cancellation of certificates without following natural justice principles was arbitrary. The Tribunal concluded that there was no error apparent on the face of records, as alleged by the department, and the order was appealable.

The Tribunal considered the submissions made by both parties and carefully reviewed the records. It was observed that the department's arguments did not establish any error apparent on the face of records warranting rectification. The Tribunal noted that a reasoned and speaking order had been issued, addressing the procurement of CT-2 certificates and the eligibility for rebate of duty paid on materials. The Tribunal highlighted that the decision-making process was sound and that the grounds for seeking rectification of the mistake were not valid. Ultimately, the Tribunal dismissed the application for rectification of mistake, emphasizing that the order was appealable. The judgment was pronounced in open court, bringing the matter to a close.