1983 (8) TMI 283 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification No. 198/76-C.E. regarding excise duty concession for specified goods.
2. Determination of time-bar for refund claims under Rule 11 of the Central Excise Rules, 1944.
3. Consideration of Department's instructions on base period and clearances approval by Assistant Collector.
4. Assessment of the appellants' compliance with duty payment and refund claim procedures.

Analysis:
The judgment by the Appellate Tribunal CEGAT New Delhi dealt with the interpretation of Notification No. 198/76-C.E. providing a concession from Central excise duty for specific goods to incentivize higher production. The appellants, tea producers, applied for this concession by submitting necessary details to the Assistant Collector within the stipulated timeline. The dispute arose when the Collector rejected their refund claim as time-barred under Rule 11 of the Central Excise Rules, 1944, due to the claim being filed beyond the prescribed six-month limit. The appellants argued that the claim was not time-barred as the excess amount paid was quantified only after the Assistant Collector determined their base period and clearances.

During the hearing, the appellants contended that the delay in quantifying the excess amount was due to the Assistant Collector's prolonged process of fixing the base period and clearances. The Department's representative argued that the appellants did not request exemption in their classification list and failed to pay duty under protest when the excess clearances began. The Department's instructions requiring approval of base period and clearances were deemed non-statutory and could not override Rule 11. However, the Tribunal considered Rule 173B, which mandated duty payment at the approved rate in the classification list, and the appellants' timely application for the concession.

The Tribunal held that the appellants' initial application for the concession, along with providing necessary particulars in advance, constituted staking their claim for exemption under the notification. The quantification of the refund claim, dependent on the Assistant Collector's approval of base period and clearances, was viewed as a continuation of the initial claim. As the appellants had applied in time and followed the prescribed procedures, including timely filing of the refund claim after quantification, the claim was not time-barred. Consequently, the appeal was allowed in favor of the appellants, granting them consequential relief.