Circular No. 317/33/97- Central Excise
dated 18/6/97
F.No. 390/154/97-JC
Government of India
Ministry of Finance
Department of Revenue, New Delhi
Subject: CEGAT Order in the case of CCE, Madras v. Addision & Co., Madras – 1997(20)RLT – 479 (CEGAT-SZB)
The CEGAT (Eastern Zonal Bench) in the case of Indo Flogates Ltd., v. CCE, Bhubaneswar 1997 (20) RLT 443 (CEGAT -EZB) has decided the issue of unjust enrichment under section 11B holding that if credit notes have been issued, refund is admissible. This decision is given by Single Member Bench.
2.0 However, the CEGAT (South Zonal Bench) consisting of two Members in the case of CCE, Madras v. Addision & Co., Madras 1997 (20) RLT 479 has held that refund is not admissible if credit notes have been issued as passing on duty at time of clearance and not post clearance transactions by issue of credit notes is relevant under section 11B of the Central Excise Act.
3.0 As the decision of South Zonal Bench is of two Members Bench, it would prevail over the decision of Eastern Zonal Bench which is Single Member Bench. The jurisdictional Commissioner has been requested to consider filling Reference Application against the order in case of CCE v. Indo Flogates Ltd.
4.0 In the aforesaid regard, the Board desires that the decision passed by South Zonal Bench in case of CCE v. Addision & Co., should be referred to in all cases involving similar issue.
