2007 (1) TMI 408 - AT - Central Excise

Summary

Issues Involved:
The issues involved in the judgment are:
1. Duty payment on Aluminum Dross/Ash and Residues.
2. Rejection of refund claim on the ground of limitation.

Issue 1: Duty Payment on Aluminum Dross/Ash and Residues:
The investigations were initiated against the appellant regarding the payment of duty on Aluminum Dross/Ash and Residues. The appellant deposited an amount of around Rs. 42 lakhs during the investigation. Subsequently, proceedings were initiated resulting in an order by the Commissioner of Central Excise, Aurangabad, confirming duty demands of around Rs. 23.45 lakhs and imposing personal penalties. On appeal, the Tribunal confirmed the duties but reduced the penalties.

Issue 2: Rejection of Refund Claim on the Ground of Limitation:
The appellant became entitled to a refund of the excess amount deposited during the investigation due to the above orders. However, the refund claim was rejected by the authorities below citing limitation. The appellant contended that the amount deposited during the investigation should be considered as deposits and not found payable by the Commissioner, entitling them to the excess amount. The Tribunal referred to precedent decisions, including Suri Industries v. Commissioner of Central Excise, Bangalore and Prempreet Textile Industries Ltd. v. Commissioner of Central Excise, Surat, to establish that such deposits are not barred by limitation. Consequently, the Tribunal set aside the authorities' decision, allowing the appeal and granting consequential relief in accordance with the law.