2007 (1) TMI 490 - AT - Central Excise

Refund - Limitation - Protest payment - General law does not apply even if duty/cess was collected without authority of law - Excise/customs duty refund claims

Summary

Issues:
- Appeal filed by Revenue against order of sanction of refund
- Appeal filed by M/s. Vishal Export Overseas Limited against denial of refund claim on the ground of time-bar

Analysis:

Issue 1: Appeal filed by Revenue against order of sanction of refund
The case involved two appeals, one by the Revenue and the other by M/s. Vishal Export Overseas Limited against the order passed by the Commissioner (Appeals). The respondents were engaged in the export of 'groundnut Kernel' and were liable to Cess under the Agricultural Produce Cess Act, 1940, and Agricultural and Processed Food Products Export Cess Act, 1985. The respondents contended that they were not liable to pay double Cess under both Acts. The Commissioner (Appeals) held that the respondents were entitled to a refund under the Agricultural and Processed Food Products Export Cess Act, 1985, based on a Circular of the Board. The Revenue appealed this decision, arguing that Circulars cannot override express provisions of law. However, the Tribunal held that Circulars issued by the Board are binding on Revenue Authorities, as established in the case of CCE, Vadodara v. Dhiren Chemicals Industries. Therefore, the Revenue's appeal was rejected.

Issue 2: Appeal filed by M/s. Vishal Export Overseas Limited against denial of refund claim on the ground of time-bar
M/s. Vishal Export Overseas Limited appealed against the denial of their refund claim on the grounds of being time-barred. The Commissioner (Appeals) partially disallowed the refund claim, citing time-bar issues related to the filing of the claim. The advocate for the respondents argued that the earlier favorable Order-in-Appeal could not be reopened, and the claim should not be considered time-barred. However, the Tribunal held that there is no estoppel against the law, and wrong decisions cannot persist indefinitely. Referring to Supreme Court decisions, the Tribunal affirmed that departmental authorities cannot invoke general law of limitation for refund applications, even if duties were collected without legal authority. The Tribunal also emphasized that refund claims must adhere to provisions of specific Acts, not general laws. Consequently, the Tribunal found no fault in the Commissioner (Appeals) disallowing part of the refund claim as time-barred. Therefore, the appeal by M/s. Vishal Export Overseas Limited was also dismissed.

In conclusion, both appeals filed by the Revenue and M/s. Vishal Export Overseas Limited were dismissed by the Tribunal, upholding the decisions made by the Commissioner (Appeals) in the case.