2017 (2) TMI 1144 - AT - Central Excise

Jurisdiction - whether the appeals pertaining to payment of drawback as provided in Chapter - X of the Customs Act, 1962 and the rules made thereunder including those for condonation of delay in submitting brand rate applications are maintainable before the Appellate Tribunal under the Central Excise Act, 1944? - In view of the differing decisions of the Tribunal in entertaining the appeals pertaining to drawback matters, the issue is placed before Hon ble President for referring it to the Larger Bench to decide the issue - matter on remand.

Summary

Issues:
- Delay in filing duty drawback claim
- Jurisdiction of the Tribunal in matters related to drawback
- Maintainability of appeals pertaining to payment of drawback before the Appellate Tribunal under the Central Excise Act, 1944

Analysis:
1. *Delay in filing duty drawback claim:* The appellants appealed against the rejection of their application for fixation of brand rate of duty drawback by the Commissioner of Central Excise, Chandigarh. The Commissioner rejected the application due to delay beyond the normal period of 60 days from the let export date. The appellants sought condonation of the delay, arguing that the reasons for late filing were convincing. The issue at hand was whether the delay in filing the duty drawback claim could be condoned by the Tribunal.

2. *Jurisdiction of the Tribunal in matters related to drawback:* The Advocate for the appellants argued for the Tribunal to condone the delay and direct the lower authority to process their application. However, the Revenue contended that the Tribunal had no jurisdiction in matters related to drawback. The Tribunal, while admitting such appeals, had conflicting views on whether to maintain them. Various judgments were cited to support both positions, highlighting the lack of clarity regarding the Tribunal's jurisdiction in drawback matters.

3. *Maintainability of appeals pertaining to payment of drawback:* The Tribunal noted differing decisions on entertaining appeals related to drawback matters. While some cases were remanded to lower authorities for processing, others were dismissed as non-maintainable. The issue was brought before the Hon'ble President to refer it to a Larger Bench to decide the question of law regarding the maintainability of appeals pertaining to payment of drawback under the Central Excise Act, 1944. This step was taken due to the conflicting decisions within the Tribunal on similar cases involving drawback claims.

In conclusion, the judgment addressed the specific issues of delay in filing duty drawback claims, the Tribunal's jurisdiction in drawback matters, and the maintainability of appeals related to payment of drawback. The conflicting decisions within the Tribunal highlighted the need for clarity on these matters, leading to a request for a Larger Bench to decide on the legal question posed.