2016 (12) TMI 1325 - AT - Central Excise

Refund - Provisional assessment - Held that - the proceedings of Provisional Assessment under Rule 7 of the Central Excise Rules, 2002 had not been completed in terms of the direction as contained in the finalisation Order where direction is given to the Range Officers to finally assess the monthly returns and determine the tax liability of the appellant - Appeal allowed - decided in favor of the assessee.

Summary

Issues:
- Appeal against rejection of refund claim in provisional assessment
- Interpretation of relevant provisions of Central Excise Act, 1944 for refund eligibility
- Completion of proceedings in provisional assessment under Rule 7 of Central Excise Rules, 2002
- Direction to Range Officers for final assessment and refund calculation

Analysis:
The appellant, a company, filed an appeal against the rejection of their refund claim in relation to provisional assessment for the financial year 1999-2000. The appellant had calculated an excess duty deposit of &8377;37,63,401 due to a reduction in input prices and claimed a refund. However, the Revenue objected to this and demanded the amount pending finalization of the provisional assessment. The final assessment order stated that no increase in value occurred during the period, leading to no differential duty. The Assistant Commissioner directed the Range Officer to finalize the monthly returns for the period. The appellant filed a refund claim of the excess duty paid, but it was rejected on the grounds of pending appeal and being time-barred under Section 11B of the Central Excise Act, 1944.

Upon hearing the parties, the Tribunal found that the provisional assessment proceedings under Rule 7 of the Central Excise Rules, 2002 were incomplete as per the finalization order's direction to the Range Officers. The Assistant Commissioner was noted to have considered irrelevant factors in rejecting the refund claim. Consequently, the Tribunal held that the appellant was entitled to a refund, subject to final calculation by the Revenue in accordance with the finalization order. The Tribunal directed the Range Officers to calculate and refund any excess duty amount with interest from the date of finalization of valuation by the Assistant Commissioner. The appeal was allowed, and the Range Officer was instructed to complete the calculations within 60 days from receiving the order copy for determining the payable or refundable amount.