2018 (4) TMI 1222 - AT - Central Excise

Refund of excise duty paid on steel and cement used in the construction of houses - N/N. 32/2005 dated 17.08.2005 - Time limitation - Held that - One of the condition for claiming refund as per the notification is to furnish a Certificate issued by the district Collector with regard to the completion of the house/project - Since such Certificate can be obtained only after completion of the construction, the time would start running only when the said Certificate has been issued to the respondent. Refund not hit by time bar - appeal dismissed - decided against Revenue.

Summary

Issues:
1. Time-barred refund claim under Notification No. 31/2005-ST.
2. Interpretation of conditions for availing benefit under Notification No. 32/2005.
3. Power of refund sanctioning authority to condone delay.
4. Impact of completion certificate on the time limit for filing refund.

Analysis:
The case involved appeals regarding refund claims of excise duty paid on steel and cement used in house construction under Tsunami rehabilitation project. The original authority rejected the refund claims as time-barred, but the Commissioner (Appeals) ruled in favor of the respondents, leading to the department's appeal before the Tribunal.

The main contention was whether the refund claims were within time as per Notification No. 32/2005, which required a completion certificate issued by the district Collector. The respondents obtained this certificate after filing the refund claim, arguing that the time for filing should commence only after receiving the certificate. The Commissioner (Appeals) agreed, citing the authority's power to condone a delay of 60 days as per the notification.

The Tribunal considered the precedent set in a similar case, where the appeal by the department was dismissed, supporting the view that the time limit for filing a refund starts upon obtaining the completion certificate. Therefore, the Tribunal upheld the Commissioner (Appeals)' decision, dismissing the department's appeals.

In conclusion, the Tribunal found no illegality or impropriety in the Commissioner (Appeals)' order and dismissed the department's appeals regarding the time-barred refund claims under the relevant notifications.