VANAVIL DYES AND CHEMICALS LTD., REP. BY THE MANAGER COMMERCIAL OPERATION Vs. THE JOINT SECRETARY (REVISION APPLICATION), GOVT. OF INDIA, MINISTRY OF FINANCE DEPARTMENT OF REVENUE,

JUDGEMENT

(1.) CHALLENGING the order of the first respondent in his order No. 147/96 dated 4.11.1996, the petitioner seeks for a direction to the first respondent to refund the sum of Rs. 6, 84 590/ - being the claim of rebate of duty due in terms of order in appeal No. 133/94(M) dated 16.5.1994 of the third respondent.

(2.) THE petitioner is a public limited Company having its manufacturing unit and registered office at Kuldikadu, Sipcot Post, Cuddalore. It cleared a quantity of 2000 kilograms of Cresol Chloride on payment of excise duty of Rs. 5, 35, 500/ -under GPI No. 20 dated 29.12.90 to its consignee called M/s. Colour Chem, Thane. Since M/s. Colour Chem was entitled for making MODVAT claim, it took credit of the excise duty paid by the petitioner in their RG 23A Part II account as an input. It is stated that subsequently M/s. Colour Chem, returned and resold the entire quantity of 2000 kilograms of Cresol Chloride on 10.11.1992 and cleared the same by applying for necessary permission under Rule 57F(1)(ii) of the Central Excise Rules under GPI NO. 74 on payment of excise duty of Rs. 6, 90, 000/ -. As contemplated under Rule 173H of the Central Excise Rules, the petitioner is stated to have filed the necessary D3 intimation on 21.11.1992 for the refund of excise duty and for bringing it to the factory or warehouse of duty paid goods.

(3.) THE petitioner's claim in so far as it related to 5000 kilos of Cresol Chloride was accepted. However, in respect of the claim for rebate of Rs. 6, 84, 590 relating to the 2000 kilos was concerned, a show cause notice was issued on 21.9.1993 calling upon the petitioner to show cause why its claim should not be rejected for certain stated reasons. The petitioner filed its reply on 8.10.1993 and thereafter the second respondent by its order dated 20.12.1993 rejected the petitioner's claim for rebate of Rs. 6, 84, 590/ - on the ground that 2000 kilos of Cresol Chloride with respect to which the said rebate was claimed was not in its original condition as required under Notification Number 197/62. The petitioner preferred an appeal before the third respondent and by order dated 16.5.1994 the appellate authority accepting the contentions of the petitioner allowed the appeal and granted the consequential relief of rebate.