2006 (1) TMI 337 - AT - Central Excise

Summary

Issues:
Appeal against refund claim allowed based on Notification No. 6/2002-CE without prior claim or challenge to assessments.

Analysis:
The appeal was filed by the Revenue against the order-in-appeal that allowed the refund claim of the respondent. The Revenue contended that the benefit of Notification No. 6/2002-CE was allowed for the first time in the refund application, without the respondent ever claiming this benefit previously or challenging the assessments made on the basis of duty paid at tariff rate. The Revenue argued that this rendered the refund claim not maintainable, citing the decision of the Hon'ble Supreme Court in a relevant case.

Upon examination, it was found that the respondent had not previously claimed the benefit of Notification No. 6/2002 for the goods they manufactured. During the disputed period, the respondent had paid duty at the tariff rate, and the benefit of the notification was sought for the first time in the refund application without contesting the assessment order. In light of the Supreme Court's decision referenced by the Revenue, the appellate tribunal concluded that the impugned order was not sustainable. Consequently, the tribunal set aside the order and allowed the appeal filed by the Revenue.

This judgment underscores the importance of adhering to procedural requirements and timely claims for benefits under notifications or laws. It highlights the significance of challenging assessment orders promptly and the potential consequences of seeking benefits retrospectively without following due process. The decision serves as a reminder for parties to be diligent in asserting their rights and complying with legal procedures to avoid adverse outcomes in similar situations.