2016 (12) TMI 141 - AT - Central Excise

Whether refund claim can be granted beyond limitation when there is no protest on record? - Held that - It is seen that the adjudicating authority had sanctioned the refund claim of the appellants from June 1999 to March 2000 Admittedly, the appellants had paid duty on galleries from June 1999 to February 2000 under protest. However, they had not mentioned under protest on the TR-6 Challan for the month of March 2000. As such, there was no protest on record for the month of March 2000. The Commissioner (Appeals) has therefore rightly rejected the claim for the month of March 2000 amounting to ₹ 65,000/- as time barred. - the order of Commissioner (Appeals) is legal and proper - appeal rejected - decided in favor of Revenue.

Summary

Issues: Whether refund claim can be granted beyond limitation when there is no protest on record.

Analysis:
The case involved a refund claim by M/s ARK Synthetic Processors regarding duty paid under protest on the galleries of a stenter machine. The refund claim was filed for the period from June 1999 to March 2000 based on a decision of the Hon’ble Supreme Court. The adjudicating authority initially sanctioned the refund claim, but the Commissioner (Appeals) partially allowed the appeal filed by the Department, rejecting the claim for the month of March 2000 due to the absence of protest on record for that specific month.

During the proceedings, the Ld. A.R. representing the Revenue argued that the appellants could not rely on another assessee’s case for their refund claim and that their eligibility for refund needed to be independently assessed. Reference was made to a judgment of the Hon’ble Supreme Court in the case of Mafatlal Industries Ltd. vs. Union of India. It was highlighted that there was no protest for the duty amount of &8377; 65,000/- for the month of March 2000, leading to the rejection of the claim as time-barred by the Commissioner.

The Tribunal observed that while the appellants had paid duty under protest from June 1999 to February 2000, they failed to indicate “under protest” on the TR-6 Challan for March 2000, resulting in the absence of a protest record for that specific month. Consequently, the Commissioner (Appeals) was deemed to have rightfully rejected the claim for March 2000 amounting to &8377; 65,000 as time-barred. Therefore, the Tribunal upheld the legal and proper nature of the Commissioner’s order, ultimately rejecting the appeal filed by the party.