2004 (5) TMI 353 - AT - Central Excise

Summary

Issues:
1. Refund claim rejection under Rule 173L of Central Excise Rules.
2. Alternative plea for refund under Section 11B of Central Excise Act.
3. Applicability of Rule 173H of Central Excise Rules.
4. Limitation for refund claim.

Analysis:
The appeal was filed against the dismissal of a refund claim by the Commissioner (Appeals). The appellants, engaged in machine manufacturing, cleared a machine but received it back due to payment issues, subsequently clearing it again and filing a refund claim under Rule 173L of the Central Excise Rules. A show cause notice was issued, questioning the refund denial as the returned machine was not remade, refined, or reconditioned. The appellants argued for consideration under Rule 173H if not eligible under Rule 173L, claiming erroneous duty payment under Section 11B due to paying duty a second time. The lower authority rejected the claim on limitation grounds.

The appellants contended that since the initial refund claim under Rule 173L was within the limitation period, the Revenue couldn't reject alternative pleas under Section 11B. They argued that even Rule 173L refund claims are subject to Section 11B. Revenue argued the machine return wasn't due to manufacturing issues, thus Rule 173L didn't apply. They suggested considering Rule 173H if no manufacturing occurred, relieving from duty payment again. The refund claim under Section 11B was made on 6-10-1999 for duty paid on 1-9-1998.

The rejection of the refund claim under Rule 173L was upheld as the process on returned machines didn't amount to manufacturing, acknowledged by the appellants. As the duty was paid on 1-9-1998 and the claim made on 6-10-1999 under Section 11B, the impugned order's rejection of the refund claim was deemed valid, leading to the dismissal of the appeal.