2018 (2) TMI 1302 - AT - Central Excise

Tribunal upholds decision denying credit for rejected rebate claim, stresses appeal procedures

Sun Pharmaceuticals Industries Ltd. Versus C.C.E.S.T., Vapi

The Tribunal upheld the decision rejecting the appellants' claim for credit of a rebate amount previously rejected by the adjudicating authority. The ... Rebate - whether the Appellants are entitled to take credit of the rebate amount rejected by the adjudicating authority? - Held that: - After rejection of part of the rebate claim of ₹ 3,29,849/-, the Appellant had not filed Appeal before the ld. Commissioner (Appeals), when in the order of the adjudicating authority, no direction for taking recredit of the rejected amount has been specified - there is no merit in the appeal - appeal dismissed. Issues involved:Whether the appellants are entitled to take credit of the rebate amount rejected by the adjudicating authority.Analysis:The case involved an appeal against the Order-in-Appeal passed by the Commissioner (Appeals) Central Excise, Customs & Service Tax, Vapi, regarding the entitlement of the appellants to claim credit of the rebate amount rejected by the adjudicating authority. The facts revealed that the appellants had filed a rebate claim during the period 2010-11 for the export of goods, but the adjudicating authority recalculated the rebate amount, rejecting an amount of Rs. 3,29,849. Initially, the appellants took this rejected amount as credit in their books of accounts, which was later reversed upon the Department's notification. Subsequently, a refund claim was filed by the appellants, which was rejected by the adjudicating authority on the grounds that the appellants had not challenged the rejection of the rebate claim before a higher forum and had erroneously taken the rejected amount as credit. The Commissioner (Appeals) upheld this decision.The appellant's advocate argued that as per a judgment of the Government of India in a specific case, the rejected rebate claim amount could be availed as credit without requiring permission from the Department. However, the Revenue's representative contended that since the issue pertained to the rejection of the rebate claim, any revision application should be made to the Government of India. The Revenue highlighted a case where an assessee had appealed against a rejected rebate claim and subsequently filed a revision application before the Government of India. In contrast, the appellants in the present case had not appealed against the rejection of the rebate claim or filed a revision application.The Tribunal supported the Revenue's argument, emphasizing that the appellants had not appealed against the rejection of the rebate claim before the Commissioner (Appeals) or filed a revision application before the Government of India. The Tribunal noted that no specific direction had been given in the adjudicating authority's order regarding recrediting the rejected amount. Consequently, the Tribunal found no merit in the appeal and upheld the impugned order, dismissing the appeal.In conclusion, the Tribunal's judgment emphasized the importance of following the proper appeal procedures in cases of rejected rebate claims and highlighted the necessity of seeking appropriate permissions for claiming credit of rejected amounts. The decision underscored the significance of adherence to legal processes and the implications of not challenging adverse decisions at the appropriate forums.