TMI Blog1994 (1) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... h May, 1971, the Central Government exempted vegetable products made from indigenous Rice Bran Oil from Excise duty leviable thereon to the extent of Rs. 10/- per quintal subject to the conditions mentioned therein. (ii) The Petitioners were manufacturing vegetable products using indigenous Rice Bran Oil. The Petitioners claimed benefit of exemption under the said Notification dated 29th May, 1971 as amended by Notification No. 40/72-C.E., dated 17-3-1972. The Petitioners first paid the excise duty payable and thereafter claimed refund under the said exemption Notification on monthly basis. Sometime prior to June, 1981, an objection was raised by the Department contending that the benefit of the said exemption Notification was restricted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rice Bran Oil used in the manufacture of vegetable products. This Notification became effective from 1st May, 1984. (iv) On 23rd January, 1985, a Show Cause Notice under Section 11(A) of the said Act was issued to the Petitioners calling upon them to Show Cause why a sum of Rs. 23,81,162.66 being refund of rebate of Central Excise for the period June, 1981 to December, 1983 claimed in respect of the entire quantity of vegetable product on the basis of the said earlier Notifications, dated 29th May, 1971 and 15th October, 1983 should not be recovered from the Petitioners. The Petitioners filed their reply to the said Show Cause Notice, inter alia, contending that the same was barred by limitation having regard to the provisions under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essed a Show Cause Notice intimating the Petitioners that the 2nd Respondent was proposing to reject the claims of the Petitioners for Rs. 23,81,162.66 for refund for the reasons stated therein and called upon the Petitioners to file their written submissions in respect thereof on or before 28th August, 1985. (viii) By their Advocates' letter dated 22nd August, 1985, the Petitioners showed cause and inter alia contended that the said Show Cause Notice dated 22nd August, 1985 was erroneously issued to them inasmuch as the subject matter thereof, being the refund claims for the period from June, 1981 to December, 1983, was already subject matter of the earlier Show Cause Notice dated 23rd January, 1985 issued to the Petitioners, which was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as submitted that the said another Show Cause Notice dated 22nd August, 1985 was issued by the 2nd Respondent under Section 11(B) of the said Act and the said Order passed on 30th August, 1985 has been passed on all the said claim refund applications of the Petitioners and as such, the 2nd Respondent was entitled in law and justified in passing the said Order dated 30th August, 1985. 6. In the said Show Cause Notice dated 23rd January, 1985 issued by the 2nd Respondent to the Petitioners, it has been stated that amounts of excise duties were erroneously refunded to the Petitioners which were recoverable from them under Section 11(A) of the said Act and as such, required the Petitioners to show cause as to why the said amount of Rs. 23,81, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that as per said Notifications Nos. 61/71 and 259/83 rebate amount was admissible on the total quantity of vegetable product cleared from the factory of the Petitioners was not acceptable. The 2nd Respondent further held that the rebate was admissible to the vegetable product manufactured out of indigenous rice bran oil and as such, there was no justification in the claim of the Petitioners that the rebate was admissible on the total quantity of Vegetable Product cleared from Petitioners' factory and that the rebate amount claimed by the Petitioners on the total quantity of Vegetable Product cleared from Factory released to the Petitioners provisionally against Bank Guarantee and B-13 Bonds was correct. The 2nd Respondent, in view of his sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or refund of excise duty even on merits. No appeal from the Order dated 24th June, 1985 passed by the 3rd Respondent having been preferred by the Department to the Customs, Excise Gold (Control) Appellate Tribunal under Section 35B of the said Act, the said order became final and binding and further Show Cause Notice issued by the 2nd Respondent on 22nd August, 1985 could in law be not issued and as such, is illegal and bad in law. The said Order dated 30th August, 1985 passed by the 2nd Respondent on such Show Cause Notice is also bad in law and is liable to be quashed and set aside. 9. In the result, both the Orders dated 28th August, 1985 and 30th August, 1985 being Exhibits `Q' and `T' to the Petition are quashed and set aside. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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