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2017 (2) TMI 57 - HC - Central ExciseRefund claim - time bar - Whether, on the facts and circumstances of the case, the Appellate Tribunal is right in allowing the refund of duty which was not paid under protest, but paid voluntarily, by the respondent after issuance of show-cause notice by the department? - Held that - the duty has been refunded at the appellate stage. Thus, the date of claim would have to partake to the original date and not from the subsequent date. Thus, the view that the claim is a time barred one is not correct, insofar as the claim should be taken to the original date and not to the subsequent date. In this view of the matter, the refund has been correctly granted and we confirm the order of the Tribunal, but on a different aspect - appeal dismissed - decided against Revenue.
Issues:
1. Refund of duty paid voluntarily after show-cause notice. 2. Application of time limit under Section 11-B of the Central Excise Act, 1944 for duty refund. Issue 1: Refund of duty paid voluntarily after show-cause notice The case involved an appeal by the Department under section 35G of the Central Excise Act, 1944 against a Final Order dated 11.5.2009 issued by the CESTAT, South Zonal Bench, Chennai. The respondent, a manufacturer of Polyester Staple Fibre and Polyester Chips, had removed goods without payment of duty in accordance with a notification. The respondent reversed credit and filed a refund claim, which was rejected as time-barred under section 11-B. The Commissioner and CESTAT had differing views on the limitation issue. The High Court held that the duty refund was correctly granted at the appellate stage, rejecting the Department's appeal and confirming the Tribunal's order. Issue 2: Application of time limit under Section 11-B of the Central Excise Act, 1944 The key legal question was whether the Appellate Tribunal was correct in allowing the duty refund without considering the time limit prescribed under Section 11-B. The High Court analyzed the date of the claim and emphasized that it should be linked to the original date, not a subsequent one. The Court concluded that the claim was not time-barred, as the refund was rightfully granted at the original date. Consequently, the Court dismissed the Civil Miscellaneous Appeal filed by the Department, upholding the Tribunal's decision and directing the Department to refund the amount without imposing costs.
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