1983 (5) TMI 223 - AT - Central Excise

Summary

Issues:
- Interpretation of the relevant period for limitation for claiming the refund of Central Excise duty under Rule 11 of the Central Excise Rules, 1944.
- Determination of the date of payment of duty under the Central Excises and Salt Act, 1944.
- Analysis of the reliance on various government orders and court judgments in support of the appellant's argument.
- Examination of the Appellate Collector's order regarding the payment of duty and the date of assessment of the R.T. 12 return.

Analysis:
1. The appeal before the Appellate Tribunal involved the interpretation of the relevant period for claiming a refund of Central Excise duty under Rule 11 of the Central Excise Rules, 1944. The appellants contended that the date of payment of duty should be considered as the date of assessment of the R.T. 12 return under Rule 173-I. They argued that duty is deemed paid only upon assessment of the return, not at the time of deposit. The appellants relied on government orders and court judgments to support their position, emphasizing the distinction between payment and assessment.

2. The Departmental Representative opposed the appellant's argument, asserting that duty must be paid before goods are removed from the factory, with the date of payment being the actual debit in the P.L.A. of the manufacturer. According to the representative, the time limit for claiming a refund should be calculated from the date of payment or debit in the P.L.A., not the date of assessment of the R.T. 12 return. The Departmental Representative supported the Appellate Collector's decision, stating that the rejection of the appellant's claim was lawful.

3. Upon examining the submissions, the Tribunal found that Central Excise duty is levied under Section 3 of the Central Excises and Salt Act, 1944, and must be paid following the prescribed procedure. The Tribunal clarified that payment of duty occurs at the time of debit in the P.L.A., not upon assessment of the return. The Tribunal disagreed with the appellant's interpretation, highlighting that the government orders cited were inconsistent with the law. Additionally, the court judgments referenced by the appellant were deemed inapplicable as they pertained to provisional assessments, unlike the present case involving final assessment. The Tribunal affirmed that its jurisdiction is limited to the Central Excise Act and Rules, supporting the legality of the Appellate Collector's decision and ultimately rejecting the appeal.