1985 (7) TMI 357 - AT - Central Excise

Summary

Issues:
Determining eligibility for concessional rate of duty under specific notifications and the applicability of the limitation period for refund applications.

Analysis:
The judgment involves two appeals by M/s. Kothari Plantations and Industries Limited concerning different Tea Estates owned by them. The appeals were heard together due to an identical issue. The appellants claimed the benefit of a concessional rate of duty under specific notifications for clearances from their Tea Estates. The eligibility for the concessional rates was determined by the Assistant Collectors, and refund applications were subsequently made and rejected based on the bar of limitation. The appellants relied on previous Tribunal decisions to support their contention that the date of application for fixation of base figures is relevant for determining the limitation period for refund claims, not the date of actual refund application. The respondent argued that the applications were for permission to pay duty at concessional rates, not for refund, and thus, the previous decisions did not apply.

The Tribunal considered the submissions and held that the principles from the previous decisions were applicable to the present appeals. It was established that the date of receipt of the application for fixation of base figures was crucial for determining the limitation period for refund applications. The Tribunal emphasized that the right to claim a refund arises only after the determination of eligibility for payment at concessional rates by the Assistant Collector. Therefore, the date of receipt of the initial applications for determination of eligibility was deemed relevant for calculating the limitation period for refund applications. The Tribunal directed that the refund applications for the relevant periods should be allowed for one year preceding the dates on which the initial applications were received by the Assistant Collector.

Consequently, both appeals were allowed, and the orders of the lower authorities were set aside. The matters were remitted to the Assistant Collectors for the grant of refunds for the specified periods based on the findings of the Tribunal. It was further directed that the refund orders should be issued within three months after the receipt of the records by the Assistant Collectors, considering the refunds related to a period over seven years earlier.