2013 (12) TMI 1188 - AT - Central Excise

Entitlement to refund under Notification No. 6/2002 - Duty paid at the time of clearance Held that - Following Tata Motors Ltd. vs. CCE, Lucknow 2011 (5) TMI 233 - CESTAT, NEW DELHI - if registration of the vehicle is made as taxi within the extended period of three months, the refund granted by the notification is to be disallowed order set aside Decided in favour of Assessee.

Summary

Issues:
Claim for refund of duty paid on motor vehicles cleared for use as taxis under Notification No. 6/2002-CE S. No. 208.

Analysis:
The primary issue in this case revolves around the entitlement of the appellants to a refund of duty paid at the time of clearance for motor vehicles subsequently registered as taxis. The specific condition under consideration is No. 51C of Notification No. 6/2002-CE S. No. 208, which mandates the production of a certificate from transport authorities showing the registration of the vehicle as a 'taxi' within a prescribed period. The appellants sought a refund of Rs.43,520/- for vehicles cleared on 30.6.02, registered as taxis on 27.11.02, leading to the denial of the refund by lower authorities due to registration occurring after the stipulated three-month period.

Upon review, the Commissioner (Appeals) interpreted the condition in a manner requiring the registration as a 'taxi' to occur within the three-month period, with the Assistant Commissioner's extension intended solely for certificate submission. However, referencing a precedent in Tata Motors Ltd. vs. CCE, Lucknow [2012 (278) ELT 685 (Tri-Del)], it was established that if the vehicle is registered as a taxi within the extended three-month period, the refund specified by the notification should be disallowed. Consequently, the impugned order was set aside, and the appeal was allowed, granting consequential relief to the appellant.

This judgment clarifies the interpretation and application of Notification No. 6/2002-CE S. No. 208 concerning duty refunds for motor vehicles registered as taxis. The decision underscores the significance of adherence to the prescribed timelines for vehicle registration as taxis to determine eligibility for duty refunds, as evidenced by the ruling in the appellants' favor based on the precedent cited. The case highlights the necessity for strict compliance with notification conditions to avail of statutory benefits, emphasizing the legal principles governing duty refunds in such circumstances.