2002 (5) TMI 444 - AT - Central Excise

Summary

Issues:
1. Duty payment under protest and time bar under Section 11B of the Central Excise Act, 1944.
2. Rejection of refund claim by Dy. Commissioner and Commissioner (Appeals).

Analysis:
1. The appellants manufactured 'Inked Ribbon' and paid duty on it from February, 97 to September, 97, contesting the levy. CEGAT held that the process of putting inked ribbon in spools/cassettes/cartridges did not amount to manufacture. A refund claim of Rs. 1,06,349/- was filed on 26-11-99, asserting payment under protest. Dy. Commissioner rejected the claim citing time bar under Section 11B, due to the absence of a specific letter of duty paid under protest as required by Rule 233B(1) of the Central Excise Rules, 1944.

2. The party's appeal against the rejection was dismissed by Commissioner (Appeals). In the subsequent appeal, it was argued that the duty was paid under protest, supported by a letter dated 18-2-97 addressed to the Supdt. of Central Excise Range-I, stating the registration was sought under protest due to a stay granted by CEGAT. This letter fulfilled the requirements of Rule 233B(1), indicating duty payment under protest from February, 97 to September, 97. Consequently, the refund claim was deemed not time-barred.

3. The Appellate Tribunal set aside the Commissioner (Appeals)'s order, allowing the appeal with consequential relief. The letter submitted by the appellants sufficiently demonstrated the duty payment under protest, thereby overturning the rejection of the refund claim.