2003 (10) TMI 338 - AT - Central Excise

Summary

Issues:
Whether the impugned order granting refund of duty is in accordance with the law.
Whether the Board circular regarding refunds should be followed.
Applicability of Section 11B in the case.

Analysis:
The main issue in the present appeal was whether the order granting refund of duty to the respondent was in accordance with the law. The Commissioner (Appeals) rejected the Revenue's application for refund based on a Board circular (Circular Number 53/90) which stated that refunds should not be given where duty was collected from customers. The circular was considered binding by the Tribunal, and it was noted that the refund claim had been sanctioned and paid before the relevant amendment to Section 11B. The Tribunal found no error in the Commissioner's decision and dismissed the appeal.

Regarding the second issue of whether the Board circular should be followed, the Tribunal emphasized that such circulars are binding on Central Excise Authorities. Despite the Revenue's contention that the circular was controversial and should not be followed, the Tribunal upheld the Commissioner's decision to rely on the circular in rejecting the Revenue's application for refund. The Tribunal found no grounds to challenge the validity of the circular in this case.

Lastly, the issue of the applicability of Section 11B was raised by the Revenue, arguing that the section should apply even to claims settled and sanctioned before its amendment. However, the Tribunal noted that the refund claim in question had been processed before the relevant amendment to Section 11B. Therefore, the Tribunal held that there was no infirmity in the Commissioner's decision to reject the Revenue's appeal based on the amended provision. As a result, the appeal filed by the appellant was dismissed by the Tribunal.