TaxTMI 
TaxTMI 
2024 (8) TMI 152
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.... bed nets. Appellants, being an EOU, exported the goods and claimed refund of accumulated CENVAT credit under Rule 5 of CENVAT Credit Rules, 2004 read with notification 27/2012-CE (NT) dated 18.6.2012, by filing the refund application after debiting the refund amount in the CENVAT credit register. The refund claims were allowed by the refund sanctioning authority. Revenue filed appeals before Commissioner (Appeals) who vide the impugned order, allowed the appeals of the department on the grounds of certain procedural infirmities in the refund claims as mentioned in para 5 of the order. He set aside the order passed by the Ld. Original Authority, with directions that the refund is to be recovered along with interest. Hence these appeals befo....
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.... and also on the decision rendered by the Hon'ble High Court of Gujarat in the case of Patel Filters Ltd Vs UOI - 2008 (4) TMI 283. He stated that ineligible CENVAT credit cannot be recovered by way of denying the refund. It should be demanded by issuing a show cause notice by invoking Rule 14 of CENVAT Credit Rules, 2004. He also relied on the decision of the Tribunal in Final Order A/87226/2023 dated 13.12.2023. He prayed that the impugned orders may be set aside and the appeals allowed. 3.2 The learned Authorized Representative reiterated the findings of the Ld. Appellate Commissioner. 4. Heard both sides and perused the records. I find that the issue for consideration is that although the claims were sanctioned after being verifie....
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....the appellant also, unless the Commissioner Appeals has some valid reasons for not doing so and the reason for which is made clear in the order. 6. It's the appellants contention that a show cause notice against the proposed order was required to be issued to them by the Commissioner Appeals, under 2nd proviso to Section 35A(3) of the Central Excise Act, 1944. The said section is reproduced below for easy reference. 35A. Procedure in appeal.- (1) The Commissioner (Appeals) shall give an opportunity to the appellant to be heard, if he so desires. (2) The Commissioner (Appeals) may, at the hearing of an appeal, allow an appellant to go into any ground of appeal not specified in the grounds of appeal, if ....
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....of the appeal, the Commissioner (Appeals) shall communicate the order passed by him to the appellant, the adjudicating authority, the Principal Chief Commissioner of Central Excise or Chief Commissioner of Central Excise and the Principal Commissioner of Central Excise or Commissioner of Central Excise. 7. A plain reading of the second proviso to Section 35A(3) of the CEA 1944 shows that if the Commissioner (Appeals) is of opinion that any duty of excise has been erroneously refunded, no order requiring the appellant to pay any duty erroneously refunded shall be passed unless the appellant is given notice within the time-limit specified in Section 11A to show cause against the proposed order. 8. I however find that both the issues, wh....