2003 (1) TMI 747 - AT - Central Excise

Summary

Issues:
Refund claim for excise duties paid by manufacturer under Notification No. 205/88; Benefit of notification not claimed by manufacturer; Denial of refund claim to customer; Interpretation of Section 11B; Applicability of Modvat credit; Approval of Classification Lists; Buyer's awareness of goods purchased.

Analysis:
1. The appellants, customers of excisable goods, filed a refund claim for duties paid by the manufacturer under Notification No. 205/88. The manufacturer did not claim the benefit under the notification, and the Classification Lists were approved without such a claim, leading to the rejection of the refund claim by lower authorities.

2. The appellants contended that they should be granted the refund as the benefit of the notification was available, citing the case law of Collector of Central Excise v. Mysore Acetate & Chemicals Co. Ltd. They argued that denial of substantive benefit under Section 11B was incorrect and that approval of Classification Lists should be reviewed.

3. The lower authorities did not consider the case of CCE v. Autolec Industries (P) Ltd. The Revenue argued that granting the refund would result in the final product being cleared at nil rate of duty, impacting Modvat credit under Rule 57C. They emphasized the buyer's responsibility to be aware of the goods purchased.

4. The Tribunal considered the submissions and upheld the decision to reject the refund claim. They relied on the principle that once Classification Lists are approved, subsequent refund applications cannot be entertained. The Tribunal agreed that buyers should be cautious about the goods they purchase and disagreed with the application of Rule 57C in this case.

5. Consequently, the lower authorities' decision to reject the refund based on approved Classification Lists was confirmed, emphasizing that such lists cannot be challenged through a buyer's refund application.

6. The appeal was rejected based on the findings that the benefit of the notification was not available to the buyer and the approval of Classification Lists precluded the refund claim.