2009 (4) TMI 655 - AT - Central Excise

Summary

Issues involved: Refund claims u/s Notification No. 39/2001-C.E. for duty paid in PLA at higher rate than 8% tariff rate for energy saving lamps (CFL) filed by manufacturer.

Summary:
1. The appellants, engaged in manufacturing CFLs, filed refund claims for duty paid in PLA at 16% instead of 8% tariff rate as per Notification No. 39/2001-C.E. The department rejected the claims stating exemption notification binds the manufacturer to avail it. The total refund amount in question was Rs. 6,40,32,058 for the months of Feb., 2007 to May, 2007.

2. The appellant's advocate argued that the department's stand was incorrect as Notification No. 39/2001-C.E. exempts goods cleared from Kutch district from duty equivalent to cash paid. The appellant did not benefit from paying duty in cash and had valid reasons for paying at a higher rate. The department contended that only duty leviable at 8% was refundable under the notification.

3. The Tribunal considered submissions and an affidavit submitted by the appellant's Managing Director. The affidavit clarified the Cenvat credit availed and the duty paid per unit. It also highlighted the department's advice to classify the lamps differently. The Tribunal found merit in the appellant's arguments, allowing the appeals with consequential relief on 23-4-2009.