2009 (11) TMI 737 - AT - Central Excise

Summary

Issues:
- Appeal against Commissioner (Appeals) order dated 14-10-2005.
- Refund claim rejection by Original Authority and Commissioner (Appeals).
- Time-barred refund claim under Section 11B.
- Dispute over duty payment for raw naphtha procurement.

Analysis:
1. The appeal was made against the Commissioner (Appeals) order dated 14-10-2005. The dispute arose when the appellants were receiving raw naphtha under Chapter X Procedure from M/s. Indian Oil Corporation, Mathura Refinery. The Central Excise Authorities raised concerns about the legality of this procedure, leading to the appellants being directed to deposit the duty forgone. The Tribunal ordered a de novo decision, ultimately ruling in favor of the appellants, allowing duty-free raw naphtha procurement.

2. The refund claim was rejected by the Original Authority and upheld by the Commissioner (Appeals) as time-barred under Section 11B. The appellants procured duty-paid naphtha from 8-2-1998 to 11-5-1998, even before the Tribunal's decision. The Original Authority stated that the claim was time-barred as it was not filed within six months of the Tribunal's order dated 22-1-1999. The Commissioner (Appeals) concurred, emphasizing that the claim should have been filed by 22-7-1999.

3. The key issue revolved around the time-barred nature of the refund claim. The appellants argued that they paid duty under protest to Indian Oil Corporation (IOC) and the Central Excise Authorities, justifying the delay in filing the refund claim. They contended that the claim was within the time limit as they received the Tribunal's order on 12-3-1999 and filed the claim on 31-8-1999. However, the SDR highlighted that the duty for the period in question was paid by IOC, not the appellants, and emphasized the six-month limit under Section 11B for refund claims.

4. The Tribunal analyzed the sequence of events and the appellants' procurement of duty-paid naphtha from IOC, acknowledging that the Chapter X Procedure was not followed in this instance. The Tribunal emphasized that buyers of excisable goods must adhere to the time limits for refund claims, irrespective of the manufacturer's actions. As the appellants failed to file the refund claim within six months of the relevant dates, the Tribunal upheld the decision that the claim was time-barred, rejecting the appeal against the Commissioner (Appeals) order.

This comprehensive analysis highlights the legal intricacies surrounding the time-barred refund claim and the procurement of duty-paid naphtha, ultimately leading to the rejection of the appeal.