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2016 (1) TMI 388 - HC - Central ExciseRefund of duty alongwith interest thereon - Period of limitation - The petitioner had paid the excise duty on iron and steel products made of steel ingots amounting to 1, 03, 670.60 in terms of notification No. 206/63. Since no duty was liable to be paid on such products the petitioner applied for refund - Held that - Apex Court in M/s Doaba Cooperative Sugar Mills Ltd. Jaandhar 1988 (8) TMI 103 - SUPREME COURT OF INDIA has ruled that in making claims for refund before the departmental authority an assessee is bound within four corners of the statute and the period of limitation prescribed in the Central Excise Act and the Rules framed thereunder must be adhered to. The authorities functioning under the Act are bound by the provisions of the Act - This decision was confirmed in Apex Court in Porcelain Electrical Mfg. Co s case 1994 (11) TMI 145 - SUPREME COURT The application for refund of duty paid for the period in question was lodged on 4.6.1973 which was clearly beyond the period of three months from the date of payment of the said duty as required under Rule 11 of the 1944 Rules. The petitioner was therefore not entitled to any refund in terms of Rule 11 of the 1944 Rules. - Decided against the assessee.
Issues:
1. Validity of orders for excise duty refund. 2. Application of Rule 11 of Central Excise Rules, 1944. 3. Applicability of Rule 173J of the 1944 Rules. 4. Interpretation of time limits for refund claims. 5. Comparison of legal judgments on limitation for refund claims. Issue 1: Validity of orders for excise duty refund The petitioner sought a writ of certiorari to quash orders related to excise duty refund on steel products made of steel ingots. Respondent No.4 partially allowed the refund claim, while respondent No.3 and the Tribunal dismissed the appeals against the orders. The petitioner contended that the duty paid was under a mistake of law, citing a Bombay High Court judgment. The revenue argued, relying on an Apex Court judgment, that the refund claim would be governed by the statutory time limit. The High Court found merit in the revenue's contention and dismissed the writ petition. Issue 2: Application of Rule 11 of Central Excise Rules, 1944 The High Court analyzed Rule 11 of the 1944 Rules, which required claimants to lodge refund applications within three months from the date of payment if paid under inadvertence, error, or misconstruction. The petitioner's refund application was lodged beyond the prescribed period, rendering them ineligible for a refund under Rule 11. The Court emphasized that the petitioner was not entitled to any refund as per Rule 11 due to the delayed application. Issue 3: Applicability of Rule 173J of the 1944 Rules The Court discussed Rule 173J, which mandated a one-year time limit for refund claims. The petitioner's claim under Rule 173J was refuted due to failure to provide relevant information on clearances within the stipulated time. Despite the petitioner's argument, the Court found no merit in their claim under Rule 173J, as they did not meet the necessary requirements for the extended time limit. Issue 4: Interpretation of time limits for refund claims The judgment highlighted the importance of adhering to statutory time limits for refund claims. Referring to legal precedents, the Court emphasized that claimants seeking refunds through departmental authorities must abide by the limitations set forth in the Act and Rules. The Court reiterated that claimants cannot bypass the statutory time limits by invoking general laws of limitation, underscoring the need for strict adherence to the prescribed timelines for refund claims. Issue 5: Comparison of legal judgments on limitation for refund claims The Court compared the Bombay High Court judgment cited by the petitioner with the authoritative pronouncement of the Apex Court in a similar case. It noted that the Bombay High Court's judgment contradicted the Apex Court's ruling on the limitation period for refund claims paid under a mistake of law. The Court dismissed the petitioner's reliance on the Bombay High Court judgment, emphasizing the binding nature of the Apex Court's decision on such matters. In conclusion, the High Court dismissed the writ petition, upholding the application of Rule 11 and Rule 173J of the 1944 Rules for determining the eligibility of the petitioner's excise duty refund claims. The judgment underscored the significance of adhering to statutory time limits and following established legal precedents in matters concerning refund claims paid under a mistake of law.
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