2018 (7) TMI 2200 - AT - Central Excise

Refund claim - time limitation - refund was claimed after a period of 6 years - HELD THAT - Hon ble Guwahati High Court in the case of VERNERPUR TEA ESTATE OWNED BY CACHAR NATIVE JOINT STOCK CO. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE SHILLONG 2018 (2) TMI 1883 - GAUHATI HIGH COURT has decided the issue where the Tribunal s order was set aside and claim of the assessee for refund after six years was allowed with the cost of 1000/-. It appears that the issue is identical where the refund claim was rejected being time barred by more than 6 (six) years. But in the case of Vernerpur Tea Estate Ors. the Hon ble Guwahati High Court has condoned the delay and allowed the claim of the assessee with cost - By following the ratio as laid down by the Hon ble Jurisdictional High Court the impugned orders are set aside and claim of the appellants regarding refund is allowed. Appeal allowed.

Summary

Issues: Refund claim rejected as time-barred by more than 6 years, applicability of High Court judgments on similar cases, allowance of refund claim after 6 years.

Analysis:
1. The appeals were filed against the Order-in-Appeal passed by the Commissioner, Customs & Central Excise (Appeals), Guwahati, regarding refund claims made after a period of 6 years. The original authority allowed the claim, but the Commissioner (Appeals) rejected it, a decision upheld by the Tribunal.

2. The Tribunal noted that the issue in all appeals was identical, focusing on the time limitation for claiming a refund after 6 years. Reference was made to the case of Mcleod Russel India Ltd. and Ors. Vs. Commissioner of Central Excise and Service Tax, where the Hon'ble Guwahati High Court remanded the matter for fresh adjudication.

3. Another significant case mentioned was Vernerpur Tea Estate & Ors. Vs. Commissioner of Central Excise, Shiilong, where the High Court allowed the refund claim after 6 years, setting aside the Tribunal's order and awarding costs to the assessee.

4. Considering the precedents set by the Hon'ble Jurisdictional High Court, the Tribunal set aside the impugned orders and allowed the refund claims of the appellants, in line with the decision in Vernerpur Tea Estate & Ors., where the delay was condoned, and the claim was allowed with costs.

5. Ultimately, the Tribunal allowed all three appeals, following the High Court's decisions and granting the refund claims that were initially rejected as time-barred, thus emphasizing the importance of judicial precedents in such matters.