2018 (3) TMI 1417 - AT - Central Excise

Scope of SCN - Refund claim - rejection on the ground of limitation u/s 11B of the CEA 1944, which was not a ground in the SCN - Held that - time limitation was not a ground raised in the SCN - There is no discussion in the orders of both the lower authorities on the submission of the appellant on the issue of unjust enrichment and the documents submitted by the appellant to substantiate their claim. The matter requires re-examination by the adjudicating authority in terms of SCN dt.25.6.2015 - appeal allowed by way of remand.

Summary

Issues:
1. Refund claim hit by limitation under Section 11B of the Central Excise Act, 1944.
2. Premature filing of appeal before finalization of provisional assessment.
3. Failure to consider the issue of unjust enrichment in the adjudication process.

Analysis:
1. The appellant, a manufacturer of pressure cookers, was allowed provisional assessment under Rule 7 of Central Excise Rules, 2002 for the period 1.4.2008 to 31.3.2009. A refund claim of excess duty payment amounting to ?4,98,620/- was filed on 24.8.2009, supported by a statement of sale value and a chartered accountant certificate. The finalization of the assessment raised the question of unjust enrichment, leading to a show cause notice dated 25.6.2015. The adjudicating authority rejected the refund claim citing limitation under Section 11B, a ground not mentioned in the show cause notice. The appellate authority upheld this decision without addressing the issue of unjust enrichment raised in the notice.

2. The appellant argued that they had timely filed the refund claim and provided all necessary documents, including responding to requests for information related to unjust enrichment. However, both the adjudicating and appellate authorities failed to consider these submissions and documents in their decisions. The appellate tribunal noted the lack of discussion on the issue of unjust enrichment in the lower authorities' orders and emphasized the need for a re-examination by the adjudicating authority based on the show cause notice dated 25.6.2015. The tribunal highlighted the importance of giving the appellant a fair opportunity to present their case.

3. The tribunal ultimately disposed of the appeal by remanding the case for further examination by the adjudicating authority. The decision emphasized the necessity of addressing the issue of unjust enrichment raised in the show cause notice and providing a proper finding based on the appellant's submissions and supporting documents. The order highlighted the principle of natural justice, ensuring that the appellant would have a fair chance to defend their position in the re-examination process.

This detailed analysis of the judgment highlights the key issues raised, the arguments presented by the parties, and the tribunal's decision to remand the case for further consideration, emphasizing the importance of addressing the issue of unjust enrichment in the adjudication process.