2007 (5) TMI 481 - AT - Central Excise

Summary

Issues:
1. Eligibility for refund of duty paid on LDO during the pendency of appeal.

Analysis:

The appeal was filed by the Revenue against an Order-in-Appeal that allowed a refund claim filed by the respondent. The appellants, a 100% EOU, procured LDO without duty payment under a specific notification. The Commissioner (A) had earlier allowed an appeal regarding LDO procurement without duty payment. Subsequently, the respondent procured LDO on duty payment and applied for a refund after the Commissioner (A) decision. The Adjudicating authority rejected the refund claim, but the Commissioner (A) allowed it, leading to the Revenue's appeal. The issue was whether the respondent was eligible for a refund of duty paid on LDO during the appeal. The Commissioner (A) found in favor of the respondent, stating that duty paid during the litigation period should be refunded based on the appellate authority's decision in their favor.

The Commissioner (A) noted that the appellants continued to obtain LDO on duty payment pending the appeal decision, which later ruled in their favor. The refund claim was rejected on grounds of limitation and not being covered by the Order-in-Appeal. The Commissioner (A) held that the duty paid during the litigation period should be refunded to the appellants based on the appellate authority's decision. The claims were not time-barred as they arose due to the Order-in-Appeal in the appellants' favor within one year from the order date.

The Commissioner (A) correctly determined that the respondents were eligible for a refund of duty paid on LDO during the pendency of the appeal. The judgment was deemed correct and legal, resulting in the dismissal of the Revenue's appeal.