Tribunal jurisdiction under excise law upheld where processing loss during repacking fell outside the statutory bar.

The jurisdictional bar under the first proviso to Section 35B of the Central Excise Act did not apply because the disputed loss arose in the factory during processing and repacking of detergent powder, not in transit between premises or in warehouse storage or processing. As the facts fell outside clause (a) of the proviso, the Tribunal could entertain the matter. Prior permissions under the Board's circular and a Government of India communication also supported that forum. The Tribunal therefore had jurisdiction, and the reference application lacked merit.

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Issues: Whether the Tribunal lacked jurisdiction under the first proviso to Section 35B of the Central Excise Act, 1944 to entertain the matter relating to processing loss and duty demand arising from repacking of detergent powder before export.

Analysis: The disputed loss occurred in the factory during processing and repacking, not in transit between a factory, warehouse, or another factory, nor in storage or processing of goods in a warehouse. The jurisdictional objection based on clause (a) to the first proviso to Section 35B was therefore inapplicable. The prior permissions obtained under the Board's circular and the communication from the Government of India also supported the view that the matter was to be agitated before the Tribunal.

Conclusion: The Tribunal had jurisdiction to deal with the case, and the reference application was without merit.

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