Refund exemption under Notification 32/99-C.E. cannot be denied while operative grant orders remain unset aside.

The refund benefit under Notification No. 32/99-C.E. could not be denied where the unit had commenced production after the relevant date and was covered by the notification. Orders of the Assistant Commissioner granting exemption by way of refund remained operative and had not been set aside when the matter was considered, so the Commissioner (Appeals) was right to rely on them. Review proceedings under Section 35E of the Central Excise Act, 1944 did not, by themselves, displace those existing orders. The Revenue's challenge therefore failed, and the assessee's entitlement to the notification benefit stood upheld.

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Issues: Whether the Revenue could succeed in denying the refund benefit under Notification No. 32/99-C.E. to the respondent unit and whether the Commissioner (Appeals) was wrong in relying on the Assistant Commissioner's unaltered orders granting the benefit provisionally.

Analysis: The unit at Amingaon had commenced production after the relevant date and was covered by the notification. The Assistant Commissioner had expressly held the unit eligible for exemption by way of refund and had passed orders granting the benefit, which had not been set aside when the appeal was decided. The later review orders under Section 35E of the Central Excise Act, 1944 did not, by themselves, displace the operative force of those orders. In these circumstances, the Commissioner (Appeals) correctly held that the refund mechanism under the notification had to be followed and that the Revenue could not deny the benefit on the basis urged.

Conclusion: The Revenue's challenge failed and the assessee remained entitled to the notification benefit on the basis of the existing orders.

Final Conclusion: The appeals were rejected and the assessee's refund benefit under the exemption notification stood upheld.

Ratio Decidendi: So long as the orders granting exemption or refund remain operative and are not set aside, the benefit under the exemption notification cannot be denied merely on the basis of pending review or collateral objections.

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