2009 (3) TMI 712 - AT - Central Excise

Summary

Issues involved: Refund claim rejection based on delayed duty payment and interest liability u/s statutory law.

Refund Claim Rejection:
The appellant, a Small Scale Industry, paid full duty on buyer's request, discharging duty liability before 15th but after 5th of every month. Audit objections in 2006 led to interest payment under protest. Refund claim filed was rejected as appellant did not fall under SSI exemption category. Commissioner (Appeals) upheld the rejection citing lack of exemption availed by the appellant.

Aggrieved Appeal:
Appellants contested the rejection, arguing department's historical acceptance of their practice without issuing a Show Cause Notice. Citing VBC Industries Ltd. v. CCE, Visakhapatnam, the consultant highlighted the department's past acceptance of the payment practice.

Interest Liability and Statutory Obligation:
JCDR emphasized interest as a statutory liability for delayed duty payment, asserting the appellant's obligation to pay interest despite not qualifying for SSI exemption. The judgment clarified that the appellant must discharge duty liability by the 5th of the following month to avoid interest liability.

Judgment and Conclusion:
The judgment upheld the interest payment requirement as per statutory law, dismissing the appeal on grounds of the appellant's awareness of duty payment obligations. The non-issuance of a Show Cause Notice was deemed a technicality, with the refund claim found lacking in merit and rightfully rejected. The appeal was consequently dismissed, affirming the rejection of the refund claim.