2016 (9) TMI 1348 - AT - Central Excise

Refund of excess paid Excise duty - rejection on the ground of time limitation - Held that - When the goods were cleared from depot to the independent buyers the data to arrive at transaction value was for the first time became available to M/s. L.G. to calculate duty due, it is undisputed that on the basis of such duty due the said refund arose - it is settled law that the date of filing refund claim whether complete or not is the date to arrive at limitation period and it is undisputed that the refund claim was filed on 5-11-2003. We, therefore, hold that M/s. L.G. is eligible for refund of duty paid by them on the subject goods from 5-11-2002 to the end of July, 2003 - matter on remand to examine the records - appeal allowed by way of remand.

Summary

Issues:
Refund claim for excess Central Excise Duty paid by M/s. L.G. Electronics India Pvt. Ltd. for the period from August, 2002 to July, 2003.

Analysis:
The case involved two appeals arising from the same impugned order, Order-in-Appeal No. 125-CE/APPL/NOIDA/2006, dated 30-8-2006. M/s. L.G. Electronics India Pvt. Ltd. filed a refund claim of &8377;1,71,19,946/- for the excess Central Excise Duty paid during August, 2002 to July, 2003. The claim was initially rejected by the Original Authority citing incomplete submission and being time-barred. The matter was taken to the ld. Commissioner (Appeals) who allowed the refund for the period from 31-5-2003 to July, 2003, but held it time-barred for the period prior to 31-5-2003. The Revenue appealed against the refund granted for the period from 31-5-2003 to July, 2003, while M/s. L.G. appealed to include the period from 1-8-2002 to 30-5-2003 for the refund.

The Revenue contended that the refund allowed for the period from 31-5-2003 to July, 2003, was erroneous. M/s. L.G. argued that the ld. Commissioner (Appeals) rightly allowed the refund as the transaction value is determined when goods are cleared from depot to buyers. They also challenged the time-barred decision, stating that the date of filing the refund claim, which was 5-11-2003, should be considered for the limitation period, and hence, the duty was paid within the time limit.

The Tribunal considered the arguments and found that the transaction value to calculate duty due was available only when goods were cleared from depot to independent buyers. Therefore, the refund claim arose at that point. The Tribunal accepted M/s. L.G.'s argument that the date of filing the refund claim determines the limitation period, and since the claim was filed on 5-11-2003, M/s. L.G. was eligible for a refund of duty paid from 5-11-2002 to the end of July, 2003. The matter was remanded to the Original Authority to calculate the refund payable for this period. The Tribunal partially allowed M/s. L.G.'s appeal and rejected the Revenue's appeal.

In conclusion, the Tribunal upheld M/s. L.G.'s eligibility for the refund of excess Central Excise Duty paid during the specified period, emphasizing the importance of the date of filing the refund claim in determining the limitation period and the availability of transaction value data for duty calculation.