2008 (6) TMI 194 - AT - Central Excise

Refund of duty credit relating to inputs used in the export product Since the shipment was made during the quarter-ending 31-12-01 and the initial claim was filed on 20-9-2002, the claim was within the time-limit prescribed notwithstanding the fact that the claim was returned with objections and the same was re-submitted later on by the Respondents even if claim is filed within the time-limit is also required to be further examined with reference to Not. No. 11 /02-C.E.- revenue contend that some export was under DEEC Scheme - Department s Appeal is partly allowed

Summary

Issues:
Refund of duty credit for exported goods, time-limit for filing refund claim, exports made under DEEC Claim, admissibility of duty credit refund, interpretation of Notification No. 11/2002-C.E. (N.T.), remand to Original Authority for re-examination of refund claim.

Analysis:
The appeal pertains to a refund claim for duty credit related to inputs used in exported goods. The Respondents exported finished goods in December 2001 and filed a refund claim in September 2002, initially for Rs. 1,11,63,445.00, which was later resubmitted for a higher amount of Rs. 1,14,83,468.00. The claim was rejected by the Original Authority citing time-bar and exports made under the DEEC Claim. The lower Appellate Authority overturned the rejection and allowed the refund in full, leading to the Department's appeal.

Upon hearing both sides, the Tribunal noted that the refund claim was required to be submitted within one year from the dates of exports as per Section 11B and Notification No. 11/2002-C.E. (N.T.). Despite the claim being returned and resubmitted, it was within the time-limit, as the initial claim was filed within the prescribed period. Therefore, the lower Appellate Authority's decision in favor of the Respondents on the time-limit issue was deemed correct.

Regarding exports made under the DEEC Scheme, the Respondents acknowledged that duty credit refund was not admissible for such consignments. The Tribunal agreed that the claim might need to be reduced for such exports and remanded the matter to the Original Authority for determining the actual refund amount admissible based on DEEC and non-DEEC exports. The Tribunal also agreed with the Department's contention that the claim needed further examination with reference to the conditions in Notification No. 11/2002-C.E. (N.T.).

In conclusion, the Tribunal held that the refund claim was filed within the prescribed time-limit but remanded the matter to the Original Authority for a fresh examination of the quantum of refund. The Respondents were instructed to provide all necessary details for reevaluation, and the Original Authority was directed to issue a fresh order within two months. The Department's appeal was partly allowed, emphasizing cooperation in the re-examination process.