Tribunal amends Final Order to rectify oversight in interest levy, acknowledging mistake apparent from record.

The Tribunal allowed the Department's application for amendment and recalled the Final Order due to the oversight in not considering the provision for levy of interest on inadmissible credit under Rule 57-I. This decision was made to rectify the error and ensure legal correctness in the judgment, acknowledging that the failure to consider the statutory provision constituted a mistake apparent from the record.

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Issues involved: Application for amendment of Final Order due to apparent mistake in not considering the provision for levy of interest on inadmissible credit under Rule 57-I of the Central Excise Rules, 1944.

Analysis:
1. Issue of Levy of Interest on Inadmissible Credit: The Department filed an application pointing out a mistake in Final Order No. 857/2010, which set aside a demand of interest on duty due to the absence of a provision for interest on inadmissible credit at the time of the earlier show-cause notice. The dispute arose from a second show-cause notice issued for recovery of interest on MODVAT credit from 5-1-1996 to 24-6-2004. The Department argued that sub-rule (3) of Rule 57-I, invoked in the notice, was overlooked, leading to erroneous conclusions favoring the assessee. The Tribunal found merit in the Department's grievance, noting that the provision for interest at the rate prescribed under Section 11AA of the Act was overlooked in the Final Order.

2. Consideration of Statutory Provision: The Tribunal acknowledged that sub-rule (3) of Rule 57-I, which mandates interest payment for non-payment within three months of a demand notice, was correctly applied in the initial proceedings. The Tribunal erred in not considering this provision while setting aside the demand for interest on inadmissible credit. The Tribunal referred to a Supreme Court judgment emphasizing that non-consideration of a statutory provision constitutes a mistake apparent from the record. Consequently, the Tribunal concluded that the failure to consider the statutory provision amounted to an apparent mistake that needed rectification.

3. Recall of Final Order: In light of the above analysis, the Tribunal allowed the Department's application for amendment and recalled the Final Order. The appeal was directed to be listed for a hearing to rectify the mistake in not considering the provision for levy of interest on inadmissible credit. The Tribunal's decision to recall the Final Order was based on the acknowledgment of the oversight regarding the statutory provision and the necessity to rectify the error to ensure legal correctness in the judgment.

In conclusion, the Tribunal recognized the oversight in not considering the provision for levy of interest on inadmissible credit under Rule 57-I, leading to an erroneous decision in favor of the assessee. The Tribunal rectified this mistake by allowing the Department's application for amendment and recalling the Final Order for further proceedings.

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