1988 (2) TMI 477 - AT - Central Excise

Summary

Issues:
1. Timeliness of filing a refund claim under Section 11B.
2. Jurisdiction of Range office to accept and forward refund claims.
3. Effect of delay caused by Inspector in forwarding the refund claim.

Analysis:
1. The appeal concerns a refund claim filed by the respondent for unutilized duty payment on Khandsari Sugar. The claim was initially deposited under AR-8 and later filed for a refund after being unutilized. The Assistant Collector rejected the claim as time-barred under Section 11B, stating it was received after the 6-month period. However, the Collector (Appeals) allowed the appeal, noting the claim was timely filed in the Range office and the delay in reaching the Assistant Collector's office was due to the Inspector, not the appellant.

2. The main contention revolved around the requirement of filing the refund claim directly with the Assistant Collector within the prescribed period. The department emphasized this strict rule, while the respondent argued that the claim was validly filed within time at the Range office, which then forwarded it to the Assistant Collector. The Range office's acceptance of the claim without objection or guidance on filing location supported the respondent's position.

3. The presiding judge upheld the Collector (Appeals) decision, considering the practice in the Collectorate where Range offices were allowed to receive and forward refund claims to the Assistant Collectors. The delay caused by the Inspector in forwarding the claim was not attributable to the respondent, as the Range office considered itself competent to handle such claims. The judge cited previous Tribunal decisions to support the conclusion that delays in forwarding claims from Range offices should not render them time-barred unless contrary to established practices.

4. In light of the above analysis and circumstances, the judge dismissed the appeal and affirmed the Collector (Appeals) orders, highlighting the importance of considering the practical aspects of claim filing and processing within the Collectorate's established procedures.