2016 (7) TMI 1113 - AT - Central Excise

Refund - appellant preferred a refund claim of duty on the ground that for the clearance of BOPP film to M/s Ravi Foods Pvt. Ltd against invalidated DFIA they are not liable to pay any duty in terms of Notification No.44/2001-CE(NT) dated 26-06-2001. - Held that - the contention of the appellant that even if they are not eligible under Notification No.44/2001 they could be given benefit of 43/2001 is therefore misconceived and unacceptable, since it is not the case of appellant that they had applied for benefit under 43/2001. - Decided against the assessee.

Summary

Issues:
1. Eligibility for refund claim under Notification No.44/2001-CE(NT) dated 26-06-2001.
2. Consideration of time bar and unjust enrichment in the refund claim.

Analysis:
1. The case involved a dispute regarding the appellant's eligibility for a refund claim of duty amounting to ?18,97,731 based on Notification No.44/2001-CE(NT) dated 26-06-2001. The appellant, a manufacturer of Metalized films, had obtained an advance authorization for deemed exports against an invalidated Duty Free Import Authorization (DFIA) held by a customer. The appellant believed they were not required to pay duty for supplying BOPP film to the customer due to the notification. However, the Deputy Commissioner rejected the refund claim, stating that the notification did not cover DFIA Scheme and the prescribed procedure was not followed. The Commissioner (Appeals) upheld the rejection, emphasizing the non-compliance with the notification's requirements. The tribunal analyzed the notification's scope and concluded that the appellant did not fall within its beneficial provisions as it was explicitly for user manufacturers or ultimate exporters, excluding DFIA holders. The tribunal dismissed the appellant's argument that they could benefit from another notification, emphasizing the original adjudicating authority's findings that the appellant failed to meet the requirements of either notification.

2. The tribunal also addressed the Revenue's appeal concerning time bar and unjust enrichment in the refund claim. Regarding the time bar, the tribunal agreed with the Commissioner that the initial submission date of the refund claim should be considered for limitation under the Central Excise Act, not the resubmission date. On the issue of unjust enrichment, the tribunal supported the Commissioner's decision, noting that thorough examination of invoices and documents revealed that payments were made excluding the duty amount, indicating no unjust enrichment. The tribunal found the Commissioner's decision on both time bar and unjust enrichment to be fair and reasonable. Consequently, the tribunal dismissed both the appellant's and the Revenue's appeals, upholding the Commissioner's order from 28-05-2010.