2006 (12) TMI 323 - AT - Central Excise

Summary

Issues involved: Whether refund of unspent PLA balance is covered u/s 11B of the Central Excise Act, 1944.

Summary:
The issue in question revolved around the applicability of Section 11B of the Central Excise Act, 1944 to the refund of unspent PLA balance. The Commissioner (Appeals) considered the provisions of Rule 9(1A) and Rule 173G(1A) of the Central Excise Rules, 1944, which allow for withdrawal of amount from PLA by the Commissioner, with this power delegated to Assistant/Deputy Commissioner of Central Excise. The appellant's consultant argued that Section 11B applies to duty refunds, a point not contested by the Commissioner (Appeals). However, the Commissioner noted that unjust enrichment does not apply to refund of unspent PLA balance, clarifying that this balance is not considered duty. The provision was included as a precaution against unjust enrichment. Since there is a specific provision for refund of PLA balance under the Rules mentioned, the Commissioner concluded that such refunds fall under the Rules and not Section 11B, which pertains only to duty refunds. Consequently, the interest provision of Section 11BB for delayed duty refunds does not apply in this case.

Upon review of the records and relevant provisions, the Tribunal found no legal flaw in the Commissioner (Appeals)'s decision regarding the application of Rule 9(1A) and Rule 173G(1A) of the Central Excise Rules, 1944. As a result, the appeal made by the appellant was dismissed. The judgment was pronounced in court on 20-12-2006.