1. Dispute regarding failure to apply for relief under Rule 56-A(i) for duty payment on intermediate products due to reliance on a trade notice. (Para 1 )
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1997 Supreme(SC) 197
SUPREME COURT OF INDIA
B.N.Kirpal : S.C.Sen
West Coast Paper Mills
Versus
Collector Of Central Excise, Belgaum
Case No. : 1039 of 1988
Date of Decision : 2/4/97
An assessee should be permitted to raise a claim for relief under relevant excise rules before the appropriate authority, even if the point was not previously raised before the tribunal, particularly when the assessee was guided by a trade notice.
Headnote:(A) Central Excise - Rule 56-A(i) - Relief regarding payment of duty on intermediate product - Appellant guided by trade notice and did not apply for relief under Rule 56-A(i) - Point not raised before the tribunal - Assessee should be allowed to raise such point before the appropriate authority. (Para 1)
Facts of the case:
The appellant did not apply for relief under Rule 56-A(i) concerning the payment of duty on an intermediate product, as they were guided by a trade notice issued by a Collectorate. This specific point was not raised during the proceedings before the tribunal, and consequently, the tribunal had no occasion to examine it.
Findings of Court:
The case is remitted back to the appropriate authority to allow the assessee to apply for necessary relief in accordance with law, and the authority is directed to examine the facts and decide the case in accordance with law.
Issues: Whether the assessee is entitled to raise a claim for relief under Rule 56-A(i) before the appropriate authority despite the point not having been raised before the tribunal.
Ratio Decidendi: Following judicial precedent, the court held that an assessee should be allowed to raise a point regarding relief before the appropriate authority even if it was not previously examined by the tribunal.
Result: Appeal disposed of.
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2. Appellant contends that reliance on a trade notice justified the failure to apply for relief under Rule 56-A(i) regarding duty on intermediate products. (Para 1 )
3. The court observed that an assessee should be allowed to raise a point for relief before the appropriate authority if not previously examined by the tribunal. (Para 1 )
4. An assessee may be permitted to raise a claim for relief before the appropriate authority even if the point was not previously taken before the tribunal. (Para 1 )
5. Case remitted to the Assistant Commissioner of Central Excise to decide the application for relief in accordance with law. (Para 1 , 2 )
6. Whether an assessee can apply for relief before the appropriate authority if the issue was not raised before the tribunal?
Yes, the court held that the assessee should be allowed to raise such points before the appropriate authority, directing the authority to examine the facts and decide the case in accordance with law. (Para 1 )
(1) IT is the case of the appellant that the appellant was guided by the trade notice issued by the Poona Collectorate and did not, therefore, apply for relief under Rule 56-A(i) as it stood at the material time. That is the reason why the appellant did not claim any benefit of relief about payment of duty on the intermediate product. This point was not taken before the tribunal and the tribunal had no occasion to examine it. A similar question came up before this court in the case of Formica India Division v. CCE and this court was of the view that the assessee should be allowed to raise this point before the appropriate authority. In view of this decision, we remit the case back to the Assistant Commissioner of central Excise. The assessee will be at liberty to apply in accordance with law for necessary relief and the Assistant Commissioner is directed to examine the facts and decide the case in accordance with law.
(2) THE appeal is accordingly disposed of. There will be no order as to costs.
