2002 (5) TMI 800 - AT - Central Excise

Compressed oxygen and liquor oxygen - Exemption under Notification No. 198/76-C.E. - Refund - Limitation

Summary

Issues:
1. Benefit of exemption under Notification No. 198/76.
2. Relevant date for refund claims under Rule 11 of the Central Excise Rules.

Issue 1 - Benefit of Exemption under Notification No. 198/76:
The case involved a revision petition filed by Indian Oxygen Ltd. against the denial of exemption benefit under Notification No. 198/76 for a specific period. The Tribunal set aside the Collector's order, ruling in favor of the assessee based on a precedent from a Special Bench in New Delhi. The revenue, aggrieved by the Tribunal's decision, filed a reference application before the Tribunal, seeking clarification on the relevant date for refund claims under Rule 11 of the Central Excise Rules.

Issue 2 - Relevant Date for Refund Claims under Rule 11 of the Central Excise Rules:
The Hon'ble High Court of Madras addressed the reference question concerning the relevant date for refund claims under Rule 11. The Court highlighted that the Notification providing duty exemption did not require the Assistant Collector to determine base periods or clearances for the assessee. It emphasized that the assessee was responsible for these calculations to claim refunds. The Court rejected the Tribunal's reasoning and ruled in favor of the revenue, stating that delays in refund claims due to the need for revenue to make calculations for the assessee were not acceptable. Consequently, the High Court ordered the assessee to pay costs to the revenue and upheld the denial of the refund claim.

In the final order, the Tribunal upheld the High Court's decision, stating that the appellant was not entitled to the refund claim benefit and directed them to deposit Rs. 2,000 as costs imposed by the High Court. The appeal was disposed of in accordance with the High Court's ruling, emphasizing the assessee's responsibility for calculations related to refund claims under the Notification.