2007 (7) TMI 383 - AT - Service Tax

Appeal remanded for lack of proper approval; Tribunal lacked jurisdiction on rebate claim.

The appeal was remanded for fresh disposal on merits due to show cause notices lacking proper approval of the Commissioner of Central Excise. ... Recall of - the subject matter in the appeal relates to claim of rebate against the exported goods. Order passed without jurisdiction. Rebate on export goods. Held that – impugned Tribunal order recalled. Issues involved:1. Remand of appeal for fresh disposal on merits due to lack of proper approval of the Commissioner of Central Excise for show cause notices.2. Jurisdiction of the Tribunal to decide on the claim of rebate against exported goods under Section 35B of the Central Excise Act, 1944.Analysis:Issue 1: Remand of appeal for fresh disposal on meritsThe appeal was remanded back to the Commissioner (Appeals) for fresh disposal on merits due to the observation that show cause notices were issued without proper approval of the Commissioner of Central Excise. The initial hearing for admission and the subsequent disposal on merits were based on this issue. The remand was made for verification purposes, and the appeal filed by the assessee was allowed in terms of the remand order.Issue 2: Jurisdiction of the TribunalThe applicant pointed out that the subject matter of the appeal pertained to a claim of rebate against exported goods, specifically man-made fabrics. It was argued that the Tribunal did not have jurisdiction to decide on this matter as per Section 35B of the Central Excise Act, 1944. Citing various decisions such as M/s. Madura Coats Ltd., M/s. India Jute Industries Ltd., M/s. Atlas Copco India Ltd., and M/s. Lakshmi Mills Co. Ltd., the applicant contended that such claims could only be decided by the Joint Secretary of the Government of India. In light of the principles established in the aforementioned decisions and the provisions of Section 35B, the earlier order was recalled. The Revenue was directed to present the appeal before the Joint Secretary, Govt. of India, who had the jurisdiction to decide on the claim of rebate against exported goods. Consequently, the earlier order passed in the impugned order was set aside, and the Revenue was instructed to present the appeal before the appropriate authority as per the cited provisions.This comprehensive analysis of the judgment covers the issues of remand for fresh disposal on merits and the jurisdiction of the Tribunal to decide on the claim of rebate against exported goods, providing a detailed understanding of the legal reasoning and decisions involved in the case.