2009 (7) TMI 59 - HC - Central Excise

Refund of amount paid under chapter X against CT-2 certificate Provisional assessment Tribunal held that in the absence of provisional assessment deposit made against CT-2 certificates clearance under chapter X can not be refunded matter remanded to tribunal for fresh consideration.

Summary

Issues:
1. Whether the deposit made by the appellant against CT-2 certificates can be refunded under Section 11B of the Central Excise Act, 1944?
2. Whether the deposits made under Chapter X of the Central Excise Rules, 1944 are provisional in nature?

Analysis:
1. The appellant filed an appeal under Section 35G of the Central Excise Act, 1944, challenging the order of the CESTAT. The main issue raised was whether the deposit made by the appellant against CT-2 certificates could be refunded, considering the absence of an order under Section 9B of the Central Excise Rules, 1944. The appellant argued that deposits made under Chapter X should be considered provisional. The Court noted that the appellant was not present during the hearing before the CESTAT due to unavoidable reasons. Referring to a letter issued by the Customs and Central Excise department, the Court acknowledged the provisional nature of the deposits made under Chapter X. The Court set aside the previous order and directed the CESTAT to provide the appellant with another opportunity to present their case and make fresh decisions based on merits.

2. The Court emphasized that the appellant, being a Public Sector Undertaking exempted from furnishing surety or security bonds, should be given a fair chance to be heard before the CESTAT. The Court's decision aimed at ensuring procedural fairness and granting the appellant the opportunity to present their arguments effectively. The judgment highlighted the importance of allowing parties to participate in the legal process and be given a chance to address any issues or concerns raised in their appeal. The Court's directive for a fresh hearing demonstrated a commitment to upholding principles of natural justice and ensuring that all parties involved have a fair and just opportunity to present their case. The judgment concluded by disposing of the appeal with the observation that the appellant should be given a fair chance to present their case before the Tribunal for a proper decision to be made.