2005 (2) TMI 699 - AT - Central Excise

Summary

Issues involved:
Refund of Central Excise duty based on excess amount recovered for freight and insurance charges, applicability of time limit under Section 11B of the Central Excise Act for filing refund claim post the Supreme Court judgment in Baroda Electric Meters Ltd. case.

Issue 1: Refund of Central Excise duty based on excess amount recovered for freight and insurance charges
The appeal involved M/s. Shree Rajasthan Syntex Ltd. seeking a refund of Central Excise duty paid on excess amounts recovered for freight and insurance charges from customers. Initially, they believed the excess amount formed part of the assessable value, leading to duty payment on it. However, following a Supreme Court judgment in Baroda Electric Meters Ltd. case, clarifying that such excess amounts do not constitute assessable value, the appellants sought a refund of the duty paid in excess. The Assistant Commissioner rejected the refund claim citing both merit and time bar, while the Commissioner (Appeals) allowed a partial refund but rejected the rest as time-barred under Section 11B of the Central Excise Act.

Issue 2: Applicability of time limit under Section 11B of the Central Excise Act for filing refund claim post the Supreme Court judgment
Section 11B of the Central Excise Act governs the refund of Central Excise duty overpaid by any entity. The section mandates that refund claims must be filed within six months from the relevant date, typically the date of payment of duty. In this case, the appellants did not file the refund claim within six months of duty payment but did so post the Supreme Court judgment in Baroda Electric Meters Ltd. case. The appellants argued that the time limit should commence from the date of the Supreme Court judgment, bypassing the limitation under Section 11B. However, the Tribunal emphasized that there is no provision in Section 11B to compute the time limit from the judgment date. Referring to a previous Supreme Court ruling in Miles India Ltd. case, which bound Customs Authorities by the limitation period under the Customs Act, the Tribunal rejected the appeal, affirming that the time limit for refund claims must adhere to Section 11B's stipulations.

In conclusion, the Appellate Tribunal, CESTAT, New Delhi, dismissed the appeal by M/s. Shree Rajasthan Syntex Ltd. regarding the refund of Central Excise duty on excess freight and insurance charges. The Tribunal upheld the time limit under Section 11B of the Central Excise Act for filing refund claims, emphasizing that the limitation period starts from the date of duty payment and not from the pronouncement of the relevant Supreme Court judgment. The decision was based on legal precedents and the absence of provisions allowing the computation of time limits based on judicial pronouncements.