2004 (12) TMI 541 - AT - Central Excise

Summary

Issues:
1. Maintainability of refund application by the purchaser prior to the amendment.
2. Interpretation of Section 11B and its retrospective effect on refund claims.

Issue 1: Maintainability of refund application by the purchaser prior to the amendment:
The judgment revolves around the question of whether a purchaser, who had not directly paid Excise Duty to the government, is entitled to claim a refund. The Respondent argued that only the manufacturer or producer who paid the duty could claim a refund. The Appellant cited the case of Mafatlal Industries Ltd. v. Union of India to support the retrospective effect of Section 11B, allowing refund claims by purchasers. However, the Respondent relied on the decision in Union of India v. Silchar Electric Supply Co. Ltd., emphasizing that only those who paid the duty directly were eligible for refunds.

Issue 2: Interpretation of Section 11B and its retrospective effect on refund claims:
The Tribunal analyzed the amendments to Section 11B, effective from 20th September 1991, which allowed purchasers to claim refunds. The judgment highlighted that the relevant date for purchasers to claim refunds was the date of purchase of goods. Referring to the case of Silchar Electric Supply Co. Ltd., it reiterated that the liability to pay tax rested with the manufacturer or producer, not the purchaser. The Tribunal rejected the Appellant's argument that the provisions had retrospective effects on purchaser refund claims, emphasizing that the Mafatlal Industries Ltd. case did not extend to purchasers. As the refund claim in this case was filed before the amendment and by the purchaser, it was deemed not maintainable, leading to the dismissal of the appeal.

In conclusion, the judgment clarifies the limitations on refund claims by purchasers prior to statutory amendments and underscores the distinction between the liabilities of manufacturers/producers and purchasers in claiming Excise Duty refunds.