2018 (10) TMI 155 - AT - Central Excise

Application for Rectification Denied, Judgment Upheld with Clarification on Credit Entitlement

Mercedes-Benz India Pvt. Ltd Versus Commissioner of Central Excise, Pune I

The Tribunal dismissed the application for rectification of mistake in the order dated 13th November 2017, finding no error or need for alteration in ... Rectification of Mistake - applicant contends that credit of the amount claimed had not been taken in the 'account current' and, in the absence of recording of this fact, the refund due to them arising from the order may well be denied - Held that:- It does not appear that any mistake exists or that there is any requirement for elaboration. That applicant was entitled to take appropriate credit in the 'account current' as a refund is in accord with the mechanism envisaged in the said exemption notification subject to any curative, with appropriate consequence, on the part of the competent authority. If the credit of the correct amount is taken in the 'account current', such corrective is not called for. The said paragraph has merely stated the provisions in the notification. Apprehension of mis-interpretation of such clear communication is not a valid justification that a mistake requiring rectification exists. The application for rectification of mistake is dismissed. Issues: Rectification of mistake in the orderAnalysis:The judgment deals with an application for rectification of mistake in an order dated 13th November 2017. The applicant contended that paragraph 13 of the order needed alteration as it was inconsistent with facts presented during the hearing and could impact the relief sought in the appeal. The applicant argued that the credit claimed had not been taken in the 'account current', potentially leading to a denial of the refund due to them. It was also highlighted that the last two sentences of the paragraph could be misinterpreted to suggest that lower authorities were not required to act on the order.Upon hearing the arguments, the Tribunal examined the paragraph in question and found no mistake or need for elaboration. It was noted that the applicant was entitled to take appropriate credit in the 'account current' as per the exemption notification, subject to any necessary action by the competent authority. The Tribunal emphasized that if the correct amount was credited in the 'account current', no rectification was necessary. The paragraph was viewed as a clear statement of the provisions in the notification, and the fear of misinterpretation was deemed insufficient to justify rectification.In light of these considerations, the Tribunal dismissed the application for rectification of mistake, concluding that there was no valid justification for rectification. The judgment was pronounced and dictated in court, bringing the matter to a close.