2008 (12) TMI 518 - AT - Central Excise

Summary

Issues involved: Appeal against rejection of refund claim due to lack of original T.R. 6 challan support.

Summary:
The appeal was filed by M/s. Sivamani Spinning Mills Ltd. challenging the rejection of their refund claim amounting to Rs. 2,86,416 by the Commissioner (Appeals) u/s Order-in-Original No. R/68/2005. The rejection was solely based on the absence of the original T.R. 6 challan. The appellants contended that the department had acknowledged the payment in December 2005, and proposed to support the claim with a photocopy of the relevant challan along with an indemnity bond, citing a similar procedure approved by the Tribunal in a Customs case. However, the Commissioner (Appeals) refused this approach, stating it was not applicable to Central Excise cases.

Upon hearing both parties, the Tribunal found no dispute regarding the payment or eligibility for refund by the appellants. Considering the circumstances and the practicality of the situation, the Tribunal deemed the appellants' proposal for refund against an indemnity bond, as seen in the Zenith Ltd. case, to be a reasonable solution. The Tribunal highlighted the difference in operating procedures between customs and central excise cases, emphasizing the safety in adopting the refund duty procedure for central excise. Consequently, the Tribunal ordered the refund to be allowed to the appellants upon execution of the indemnity bond, as per the Zenith case. The appeal was thus allowed, with the decision pronounced on 29-12-2008.