2008 (12) TMI 571 - AT - Central Excise

Summary

Issues Involved: Appeal against imposition of penalty, refund claim rejection on grounds of time-barred/premature, legality of predeposit for refund.

Appeal against Imposition of Penalty: The respondents, manufacturers of dumpers and parts, faced a duty demand issue regarding Modvat inputs. The Commissioner dropped part of the demand but confirmed an amount and imposed a penalty. The Tribunal directed a deposit, and the assessee sought a refund. The Deputy Commissioner rejected the refund claim as time-barred/premature. The Tribunal reduced the penalty, and the Commissioner directed the refund based on a Board's Circular. The Revenue appealed, arguing that the claim was barred by limitation as the duty was paid during the investigation stage before the show-cause notice was issued.

Refund Claim Rejection: The Deputy Commissioner rejected the refund claim as time-barred/premature since the duty was paid in 1994 but the claim was filed in 1997 while the appeal was pending. The Commissioner (Appeals) awaited the Tribunal's final order before addressing the refund claim. The Tribunal reduced the penalty and directed the refund based on a Circular, leading to the Revenue's appeal challenging the treatment of the amount paid as a predeposit.

Legality of Predeposit for Refund: The Tribunal held that the amount paid as duty before the show-cause notice was also a predeposit. The Tribunal's final order in 2002 allowed the consideration of the refund claim. The Revenue's argument that the claim was time-barred was dismissed, upholding the impugned order and rejecting the appeal.

(Operative portion of the order was pronounced in open court on 11-12-2008)