Tribunal has no jurisdiction to entertain appeals: DB

Excelsior Correspondent
JAMMU, May 2:  In two different LPAs posing common question of law for determination, Division Bench of State High Court comprising Acting Chief Justice Ramalingan Sudhkar and Justice Sanjeev Kumar has held that Tribunal has no jurisdiction to entertain the appeals pertaining to rebate in excise duty on export.
In the LPAs, it has been submitted that the respondents are industrial units situated at SIDCO Industrial Complex, Kathua and are engaged in the manufacture of Reclaim Rubber Butyl falling under Chapter Heading 40003000 of the 1st Schedule to the Central Excise Tariff Act, 1985.
They have been availing Cenvat Credit on various inputs and capital goods used in or in relation to the manufacture of final product (export goods) under Cenvat Credit Rules, 2004. The respondents have also been availing the facility of refund in terms of Notification No.01/2010-CE dated 06.02.2010. The respondents exported their finished goods manufactured in their respective units and claimed rebate on duty in terms of Notification No.19/2004-C.E.(N.T) dated 06.09.2004.
However, their claim was rejected by the Jurisdictional Assistant Commissioner of Central Excise Division, Jammu. Accordingly, the respondents went in appeal before the Commissioner (Appeals), Chandigarh-II but the appeals were also dismissed.
Thereafter, the respondents challenged the orders passed by the Commissioner (Appeals) before the Customs, Excise and Service Tax Appellate Tribunal. By a common order dated 27.07.2016, the Tribunal accepted the appeals and impugned orders passed by the Commissioner (Appeals) against the respondents were set aside.
The common order passed by the Tribunal in favour of the respondents was challenged by the Revenue by way of instant appeals.
“There is substance in the plea taken by the appellant that in terms of the first proviso to Section 35B (1) of the Act, the appeal before the Tribunal was not maintainable as the orders passed by the Commissioner (Appeals) as well as the Jurisdictional Assistant Commissioner relate to the rebate of duty of excise on goods, exported to any country or territory outside India or on exciseable materials used in the manufacture of goods which are exported to any country or territory outside India are not amenable to the jurisdiction of the Tribunal”, the DB observed.
“It is clear that if the order relates, inter alia, to a rebate of duty of excise on goods, exported to any country or territory outside India or on excisable materials used in the manufacture of goods which are exported to any country or territory outside India, the same would not be amenable to the appellate jurisdiction of the Tribunal and the remedy would be as provided under Section 35EE(1) of the Act”, the DB said, adding “it is the Central Government alone which can annul and modify any order passed under Section 35A of the Act which is in the nature referred to in the first proviso to Sub Section (1) of Section 35B of the Act. The Central Government, however, would do so only on application of any person aggrieved of such order”.
“The Tribunal had no jurisdiction to entertain the appeals. Consequently, the order impugned is set aside. The respondents, however, shall be at liberty to seek remedy before the appropriate authority prescribed under law”, the DB said.

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