2009 (10) TMI 718 - AT - Central Excise

Refund claim - time limitation - Held that - the protest given by the manufacturer cannot give benefit of extended time for claim of refund and a buyer has to claim the refund within the stipulated time limit prescribed u/s 11B of the CEA - appeal dismissed - decided against appellant.

Summary

Issues:
Claim for refund of excise duty paid on conveyor belts purchased from manufacturer beyond the statutory time limit - Evidence of duty payment under protest by manufacturer - Applicability of extended time for refund claim based on manufacturer's protest.

Analysis:
The judgment by the Appellate Tribunal CESTAT Kolkata dealt with two appeals involving common facts and legal issues regarding the refund claims of excise duty paid on conveyor belts purchased from a manufacturer. The Appellants claimed refunds for two periods, one from 20-11-1986 to 29-11-1987 and the other from 24-1-1990 to 25-2-1994, totaling significant amounts. They asserted that the manufacturer had paid the duty under protest, justifying their refund claims filed beyond the six-month time limit. However, the original Authority and the Commissioner (Appeals) rejected the claims, citing lack of evidence regarding the duty payment under protest and the claims being time-barred.

The Appellants' Advocate argued that a similar case involving conveyor belts purchased from another manufacturer was under review by the Supreme Court, suggesting a stay against the Tribunal's order. The Departmental Representative supported the lower authorities' findings. The Tribunal carefully considered the submissions and records, noting the Appellants' failure to produce evidence of the manufacturer's protest payment. Despite a letter from the manufacturer confirming document verification for refund claims, it did not explicitly state the duty payment was made under protest.

The Tribunal emphasized that for a claim to benefit from the extended time limit, evidence of the manufacturer's protest payment was crucial. It questioned whether a manufacturer's protest could extend the refund claim time for all buyers. Referring to a similar case decided by the Chennai Bench of the Tribunal, which rejected the benefit of extended time based on the manufacturer's protest, the Tribunal found no merit in the Appeals. Ultimately, the Tribunal rejected the Appeals, upholding the lower authorities' decisions. The judgment highlighted the necessity of concrete evidence to support claims for extended time limits based on the manufacturer's actions, emphasizing adherence to statutory provisions under the Central Excise Act for refund claims.