COMMISSIONER OF CENTRAL EXCISE Vs. RAJASTHAN TEXTILE MILLS

JUDGEMENT

(1.) WE have heard the learned counsel appearing for the parries. This D.B. Excise Appeal under section 35G of the Central Excise Act, 1944, arising out of the order dated April 12, 2007 passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (for short, "the Tribunal"), by which it has set aside the order dated January 24, 2005 passed by the Commissioner of Central Excise (Appeals I), Jaipur. The Department has raised the following question of law for consideration of the court, on which the appeal was admitted :

(2.) THE appellant is engaged in the manufacturing of cotton yarn, synthetic yarn and synthetic blended yarn. They are exporting goods after stuffing in containers at the factory premises under the supervision/examination of Central excise officers. The appellant paid merchant overtime (for short, "MOT") charges to the Department for stuffing of containers for supervision by the Central excise officers. They thereafter filed refund claim for MOT charges paid under protest during normal working hours from September, 2001 to June, 2003. The Deputy Commissioner, Central Excise Division, Kota rejected the refund claim filed by the respondent. The Commissioner (Appeals) upheld the rejection.

(3.) IT is submitted by the learned counsel appearing for the Department that the supervisions and inspections were carried out beyond normal place of work of the officers of the Central Excise Department, and beyond the customs area at Bhawani Mandi, which is 125 k.m. from Kota, and thus the supervision charges were leviable. The contention is not acceptable, inasmuch as paragraph 5(c) of the Board circular dated September 7, 1998 says that "rendering services by customs officers" means that performances of customs work by the customs officers beyond the customs area at any time.