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2017 (10) TMI 430 - AT - Central ExciseRefund claim - denial on the ground that refund claim u/r 5 of CCR, 2004 should have been filed on monthly basis whereas respondent filed the refund claim on quarterly basis - Held that - overall time period of one year is provided for filing of refund in terms of Section 11B - The appellant have filed refund claim within one year. As regard the dispute whether it should be filed on monthly or quarterly basis, it is facility provided to the assessee even if the assesse has not opted for such facility of filing refund on monthly basis, the same cannot be reason for rejecting refund claim - reliance placed in the case of Commissioner of Central Excise & Customs, Nagpur I Versus Fabrimax Engineering Pvt. Ltd. 2016 (7) TMI 498 - CESTAT MUMBAI , where it was held that N/N. 27/2012 contemplates for filing of refund claims of unutilised Cenvat credit quarterly, but it does not bar an assessee from filing refund claim for the entire period which may be more than a quarter - matter remanded to the adjudicating authority who shall pass a fresh order after re-processing refund claim within a period of three months - appeal allowed by way of remand.
Issues involved:
1. Refund claim rejection based on filing frequency. 2. Interpretation of Notification No.11/2002-C.E. (N.T.). 3. Applicability of the Hon'ble Supreme Court decision. 4. Procedural lapse and denial of substantial benefit. 5. Time limit for filing refund claims. 6. Facility of filing refund claims on a quarterly basis. 7. Adjudicating authority's limited consideration of issues. 8. Precedents supporting the allowance of refunds despite filing frequency. Detailed Analysis: 1. The primary issue in the judgment was the rejection of a refund claim due to the appellant filing on a quarterly basis instead of monthly, as required by Notification No.11/2002-C.E. (N.T.). The adjudicating authority based the rejection on this filing frequency discrepancy alone, without addressing any other issues. The Commissioner (Appeals) allowed the appeal with consequential relief, leading to the Revenue appealing the decision. 2. The Revenue, represented by the Ld. Asstt. Commissioner(AR), contended that the Hon'ble Supreme Court decision in the case of Eagle Flask Industries Limited Vs. Commissioner of C. Ex. Pune mandated strict adherence to the conditions of the notification. The Ld. Commissioner(Appeals) was criticized for not considering this judgment, emphasizing that any contravention of the notification's conditions should result in the denial of benefits to the assessee. 3. On the other hand, the Respondent's counsel argued that the quarterly filing instead of monthly was a procedural lapse that should not lead to the denial of substantial refund benefits. Various judgments, including Western Cans P Ltd, Sandoz Pvt Ltd, Quality BPO service Pvt ltd, and CCE & c. Vs. Fabrimax Engineering Pvt ltd, were cited to support the contention that such lapses should not bar the refund claim. 4. The Member (Judicial) carefully considered both sides' submissions and the record. It was noted that the only issue addressed by the adjudicating authority was the filing frequency discrepancy. The Member opined that the overall time period of one year provided for filing refunds under Section 11B was adhered to by the appellant. The facility of filing on a monthly basis was viewed as optional, and the failure to opt for it should not be a reason for rejecting the refund claim. 5. The Member referenced precedents like Western Cans P Ltd, Sandoz Pvt Ltd, Quality BPO service Pvt ltd, and Fabrimax Engineering Pvt ltd to support the view that the denial of the rebate claim based solely on the filing frequency discrepancy was unwarranted. The judgment allowed the Revenue's appeal by remanding the matter to the adjudicating authority for a fresh order within three months, considering all relevant issues beyond just the filing frequency discrepancy. In conclusion, the judgment highlighted the importance of considering all aspects of a refund claim beyond procedural lapses, emphasizing the need for a comprehensive review before rejecting a claim solely based on filing frequency discrepancies.
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