2007 (10) TMI 33 - AT - Central Excise

Refund of amount paid as NCCD Consignments on which NCCD was paid were cleared by them prior to exemption notification So, benefit of notification was not available at the relevant time Hence, refund can not be allowed

Summary

Issues involved:
1. Rejection of refund claim amounting to Rs. 6,15,050/- filed by the appellant before the authorities based on the payment of NCCD.
2. Interpretation of Notification No. 6/2003 dated 17-5-2003 exempting NCCD on the final products of the appellant's inputs.
3. Examination of invoices and clearance dates to determine the liability of NCCD payment.
4. Assessment of evidence regarding the timing of clearances in relation to the exemption notification.

Analysis:

1. The primary issue in this case revolves around the rejection of the appellant's refund claim amounting to Rs. 6,15,050/-, which was filed based on the contention that the NCCD amount paid by them was not payable. The appellant claimed this refund on the grounds that the NCCD on their products was exempted by Notification No. 6/2003 dated 17-5-2003. The appellant argued that the entire amount was debited at the instance of the departmental audit officers.

2. The Notification exempted NCCD on the final products of the appellant's inputs at the rate of 1% of the value of the goods. The appellant had paid the amount of Rs. 6,15,050/- as NCCD through specific invoices dated 24-5-2003. However, upon reviewing the invoices and the clearance dates, it was observed that the duty liability under NCCD was discharged on specific clearances, even though those clearances were not liable to NCCD. The appellant claimed that these consignments were cleared prior to the exemption notification date, but there was a lack of evidence supporting this claim.

3. The advocate representing the appellant failed to provide concrete evidence or cross-references indicating that the consignments were indeed cleared before the exemption notification came into effect on 17-5-2003. Without substantial proof to support the assertion that the NCCD was paid on the insistence of the revenue department, the rejection of the refund claim by the Commissioner (Appeals) was deemed appropriate and did not warrant any intervention.

4. In conclusion, the Tribunal upheld the decision to reject the appellant's refund claim, citing the lack of evidence linking the NCCD payment to clearances made before the exemption notification date. The judgment emphasized the importance of providing verifiable documentation to substantiate claims in cases involving tax liabilities and exemptions.