2005 (8) TMI 7 - AT - Central Excise

Purchaser of goods not registered any protest. Provisions relating t payment of duty under protest not applicable to refund filed by it despite manufacturer paid duty under protest.

Summary

Issues:
1. Limitation period for filing refund claims under Section 11B of the Central Excise Act.
2. Applicability of Section 11B in cases where duty is paid under protest by the manufacturer.
3. Distinction between the rights of a manufacturer and a buyer in claiming refund of duty.
4. Interpretation of the law regarding refund claims filed by purchasers.
5. Justification for rejecting refund claims on the grounds of limitation and unjust enrichment.

Analysis:
1. The case involved Public Sector Undertakings engaged in coal mining who purchased conveyor beltings on which duty had been paid by the manufacturer under protest. The issue was whether the refund claims filed by the buyers were time-barred under Section 11B of the Central Excise Act, given that the claims were made beyond the prescribed period from the date of purchase of the goods.

2. The appellants argued that the limitation period under Section 11B should not apply to their refund claims as the duty was paid by the manufacturer under protest. They relied on a Supreme Court judgment which suggested that in such cases, the limitation period would not be applicable. However, a subsequent judgment by a larger bench of the Supreme Court held otherwise, stating that the purchaser cannot claim refund without complying with Section 11B.

3. The Tribunal considered the distinction between the rights of a manufacturer and a buyer in claiming refund of duty. It was highlighted that the law treats the manufacturer and purchaser differently in terms of refund claims, emphasizing that the purchaser must adhere to the limitation period prescribed under Section 11B from the date of purchase of the goods.

4. The Tribunal referred to a specific judgment by a Bench of three Judges of the Supreme Court, which clarified that a purchaser is not entitled to claim refund of duty paid under protest by the manufacturer without following the procedures outlined in Section 11B. This interpretation was deemed applicable in the present case, leading to the dismissal of the refund claims as time-barred.

5. Ultimately, the Tribunal upheld the decision to reject the refund claims on the grounds of being time-barred, citing the apex court's ruling in a similar case. Since the claims were considered time-barred, the issue of unjust enrichment did not need to be examined further, and both appeals were consequently dismissed.