2004 (6) TMI 570 - AT - Central Excise

Summary

Issues: Refund claim rejection based on time-barred and lack of locus standi.

In this case, the appellant, a major producer of Zinc and Lead Metals with captive mines, filed a refund claim amounting to Rs. 2,37,724.00 for duty paid on explosives used in mining operations, despite being statutorily exempted. The Assistant Commissioner rejected the claim as time-barred for a portion of the amount and on the grounds of lack of locus standi for the rest. The Commissioner (Appeals) upheld this decision, leading to the appeal before the Appellate Tribunal CESTAT, Kolkata.

Analysis:
The appellant argued for the refund claim, contending that they were entitled to it. However, the Revenue relied on a Tribunal decision in the case of I.D.L. Industries v. Commissioner of Central Excise, BBSR, where it was held that explosives used in mines for extracting zinc ores were not entitled to the benefit of certain notifications as they were not used in the actual manufacturing process of zinc concentrate. The Tribunal's Larger Bench clarified that the process of manufacturing zinc concentrate starts in the factory, not in the mines.

The Tribunal, after considering the arguments from both sides and the precedent set by the Larger Bench, upheld the Commissioner (Appeals) order and rejected the appeal filed by the appellants. It was noted that the issue had already been settled by the Larger Bench, and as a result, Appeal Nos. E/R-370/2001 and E/R-371/2001, which contained identical classification questions, were also rejected.