2006 (12) TMI 436 - AT - Central Excise

Summary

Issues involved: Applicability of time-bar in refund of deemed credit under Notification No. 29/96.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Ahmedabad, dealt with the issue of the time limitation for filing a refund claim regarding deemed credit under Notification No. 29/96. The appellants, engaged in manufacturing processed fabric, were availing deemed credit for grey fabric used in their manufacturing process. Due to exporting processed fabric under bond, they could not utilize the deemed credit on grey fabrics and sought a refund as per the proviso to Para 3 of Notification No. 29/96. The Assistant Commissioner sanctioned a refund of Rs. 3,74,828/-, but the Revenue appealed, leading to dismissal by the Commissioner (Appeals) citing a filing delay beyond six months from the date of export, deemed as a contravention of Notification No. 85/87-C.E.

The appellant's advocate argued that Notification No. 29/96 does not specify a time limit for filing refund claims. The advocate referenced the provision to Para 3 of Notification No. 29/96, emphasizing that no time limitation was prescribed by the Central Government. The advocate cited precedents, including the Tribunal's decision in Gulshan Prints P. Ltd. v. Commissioner of Central Excise, Surat, and the Division Bench decision in Sanghi Textiles Limited, stating that the time limits under Sec. 11B of CEA, 1944, and Notification No. 85/87 would not be applicable to refund of deemed credit.

The Tribunal, after considering the submissions, found that the appellant's case aligned with the cited precedents. Consequently, the Tribunal set aside the Commissioner (Appeals) order and allowed the appeal. The judgment clarified that the time limits under relevant provisions were not applicable to the refund of deemed credit under Notification No. 29/96, providing relief to the appellants in this case.