1975 (7) TMI 147 - CGOVT - Central Excise

Summary

Issues:
1. Refund claim for excess excise duty paid due to misconstruction of law.
2. Admissibility of refund claim for the period from 1-3-1971 to 31-8-1972.
3. Interpretation of the Voltas' judgment regarding assessment of excise duty.
4. Application of Rule 11 read with Rule 173G of the Central Excise Rules, 1944 for refund claims.
5. Government's power to modify orders under Section 36(2) of the Central Excises and Salt Act, 1944.

Analysis:
1. The case involved a refund claim by M/s. Golden Tobacco Co. Ltd. for excess excise duty paid, contending that the assessment was based on a misconstruction of law. The Assistant Collector rejected the claim, stating that the assessment was finalized based on approved prices. However, the Appellate Collector allowed the refund under Rule 11 of the Central Excise Rules, 1944.

2. The Central Government issued a show cause notice questioning the Appellate Collector's order. The party argued that the payment was made under mistake and that the absence of a provision for price list revision should not deprive them of a legitimate refund. They cited constitutional and contractual provisions supporting their claim for refund.

3. The Government of India considered whether the refund claim for the period from 1-3-1971 to 31-8-1972 was admissible. They analyzed the impact of the Voltas' judgment on the assessment of excise duty, emphasizing that the overpayment was due to misconstruction of law, which came to light post the judgment.

4. The Government concluded that the refund claim was valid as it arose from a misconstruction of law, subject to compliance with Rule 11 read with Rule 173J of the Central Excise Rules, 1944. They clarified that the date of payment, not assessment, was crucial for determining admissibility.

5. Exercising its power under Section 36(2) of the Central Excises and Salt Act, 1944, the Government modified the Appellate Collector's order, allowing the refund claim based on the misconstruction of law highlighted by the Voltas' judgment.