2007 (1) TMI 361 - AT - Central Excise

Summary

Issues involved: Appeal against order-in-appeal for consequential refund of duty paid, time-barred refund claim.

Issue 1 - Appeal against order-in-appeal for consequential refund of duty paid:
The Revenue filed an appeal against the order-in-appeal passed by the Commissioner (Appeals) upholding the consequential refund of duty paid by the respondents. The Commissioner (Appeals) allowed the refund subject to verification by the proper officer that the incidence of duty has not been passed on to the customers.

Issue 2 - Time-barred refund claim:
The Revenue contended that the duty paid by the respondents on 24-3-99 was not paid under protest as it was done suo motu and not in pursuance to a show cause notice. Therefore, the Revenue argued that the refund claim is time-barred.

In response, the respondents explained that the duty was paid on 24-3-99 during an investigation, and a show cause notice was issued on 12-5-2000. The adjudicating authority confirmed the demand in 2003 and appropriated the amount already paid. Upon appeal by the respondents, the adjudication order was set aside. Subsequently, the respondents filed a refund claim as a consequential relief following the order passed by the Commissioner (Appeals).

The Tribunal found that the refund claim was filed in accordance with the order of the Commissioner (Appeals) setting aside the adjudication order confirming the duty payment. The Commissioner (Appeals) had allowed the consequential relief, contingent upon verifying that the duty incidence was not transferred to the customers. Consequently, the Tribunal upheld the impugned order, dismissing the appeal filed by the Revenue.

(Order dictated and pronounced in the Court on 8-1-2006)