2003 (10) TMI 156 - AT - Central Excise

Tribunal Upholds Assessees' Right to Issue Certificate 'A' under Central Excise Rules

The Tribunal rejected the Revenue's appeal and upheld the decision of the Commissioner (Appeals), allowing the assessees to issue Certificate 'A' under ... Adjustment in duty credit Issues:1. Retrospective application of amended provisions under Rule 57E of Central Excise Rules, 1944.2. Denial of Certificate 'A' under Rule 57E due to alleged suppression of facts or fraud.3. Interpretation of the six-month period under Rule 57G for issuance of certificates.4. Allegations of suppression of facts and duty demand under Section 11A of the Central Excise Act, 1944.Issue 1: Retrospective application of amended provisions under Rule 57E:The appeal was filed by Revenue against the Order-in-Appeal, arguing that the amended provisions effective from 1-3-97 cannot be applied retrospectively to payments made earlier. The Revenue contended that the provision of Rule 57E should apply even if the amendment was clarificatory in nature. However, the Tribunal upheld the Order-in-Appeal, stating that since the duty demanded and paid by the assessees were prior to the amendment, they cannot be denied the issuance of Certificate 'A' under Rule 57E.Issue 2: Denial of Certificate 'A' under Rule 57E due to suppression of facts or fraud:The Revenue alleged suppression of facts in the show cause notice, invoking the proviso to sub-section (1) of Section 11A of the Central Excise Act, 1944. However, the Tribunal found that the duty demand was for a period prior to 1991, and as there was no provision to deny the certificate where duty was paid by the assessees after clearances, the issuance of Certificate 'A' under Rule 57E could not be denied.Issue 3: Interpretation of the six-month period under Rule 57G for issuance of certificates:The Revenue argued that the six-month period under Rule 57G should be calculated from the date of issue of the certificate under Rule 57E and not from the date of payment. However, the Tribunal did not find this argument persuasive and upheld the decision of the Commissioner (Appeals) in favor of the assessees.Issue 4: Allegations of suppression of facts and duty demand under Section 11A of the Central Excise Act, 1944:The Revenue alleged suppression of various facts based on follow-up investigations conducted with recipients of motor vehicle parts. Despite these allegations, the Tribunal found that the duty demand was for periods prior to the relevant amendment and upheld the decision of the Commissioner (Appeals) in favor of the assessees.In conclusion, the Tribunal rejected the appeal by Revenue and upheld the decision of the Commissioner (Appeals), allowing the assessees to issue Certificate 'A' under Rule 57E of the Central Excise Rules, 1944.