BARODA RAYON CORPN LTD Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS day, only stay application was listed for hearing and not the appeal.

(2.) Shri Koruthu, the learned consultant, on behalf of the applicants/appellants stated that this is not a Special Bench matter. The appeal involves an issue which can be decided within a short campus. In any case, they are not challenging or disputing the interpretation of Notification in their present appeal. He, therefore, requested for disposal of the appeal itself. Narrating the facts of the case, he stated that the appellants claimed exemption in terms of Notification No. 178/77 dated 18-6-1977, but since the instructions were received late they had paid full duty and hence claimed for refund of Rs. 1,03,589.52 for the period from 18-6-1977 to 8-1-1978. The Asstt. Collector of Central Excise, Surat rejected the entire claim on merits. Against the order of the Asstt. Collector, the appellants herein filed an appeal before the Collector of Central Excise (Appeals) Bombay. The Collector (Appeals) by his order No. T-441-BRD-398/85 dated 27-12-1985 ordered that the refund of duty should be granted for the period from 3-8-1977 to 8-1-1978 but rejected the claim for the earlier period from 18-6-1977 to 2-8-1977 as time barred. In pursuance of this Collector (Appeals)' order, the Asstt. Collector issued a cheque for an amount of Rs. 84,412.17 sanctioning the refund. Subsequently, the same Asstt. Collector issued a notice to the appellants to show cause as to why the amount of refund should not be demanded back. After considering the reply of the appellants, the Asstt. Collector, finally ordered for the credit of the amount in PLA instead of settling the refund by way of cheque. Against the aforesaid order of the Asstt. Collector, the Collector directed an appeal to be filed before the Collector (Appeals). The Collector (Appeals) in the impugned order set aside the order of the Asstt. Collector directing the credit of the amount in PLA and held that the amount is to be re-credited by the appellants. The present appeal is against the order of the Collector (Appeals) No. 458/89-BD dated 28-2-1989.

(3.) HEARD Shri Prabhu. He confirmed the facts as narrated by Shri Koruthu, but contended that the Asstt. Collector has issued a show cause notice for recovery of the refund erroneously granted but finally decided the issue in favour of the appellants. Hence, the respondent Collector has a cause of action to review that order and directed filing an appeal.