2018 (5) TMI 1338 - AT - Central Excise

100% EOU - Refund claim - time limitation - the claim was filed beyond the period of one year from the date of export - Held that - in the case of export of goods the relevant date for calculating the limitation period is one year from the date on which the goods were exported - refund claim filed is not within time limitation - appeal dismissed - decided against appellant.

Summary

Issues:
1. Time-barred refund claim under Section 11B of the Central Excise Act.
2. Interpretation of Rule 5 of Cenvat Credit Rules in relation to time limitations for refund claims.
3. Applicability of limitation period for refund claims on unutilized cenvat credit accumulated due to export of goods.

Analysis:
1. The appeal was against the Commissioner (Appeals) order upholding the rejection of a refund claim by the Assistant Commissioner of Central Excise as time-barred under Section 11B of the Central Excise Act. The claim was filed beyond one year from the date of export, leading to the rejection of the claim.

2. The appellant argued that Rule 5 of Cenvat Credit Rules is independent of Section 11B and the time limit under Section 11B should not apply to Notification No. 5/2006 CE and 27/2012 CE. It was contended that there is no prescribed time limit for utilizing cenvat credit, especially when accumulated due to export.

3. The opposing view highlighted judgments like CCE vs. GTN Engineering and subsequent cases by the Madras High Court, which emphasized the relevance of Section 11B in refund claims. The AR cited the case law to support the position that the limitation period for refund claims, even on unutilized cenvat credit from exports, is one year from the date of export. The Tribunal's decision in Banswara Syntex Ltd. Vs. CCE, Jaipur-II was also referenced in support of this interpretation.

4. Upon considering the arguments and precedents, the Tribunal upheld the impugned order, finding it consistent with the judgments of the High Courts. The Tribunal concurred with the view that the limitation period for refund claims related to export of goods is one year from the date of export, as established by the decisions of the Madras High Court. Consequently, the appeal was dismissed, affirming the rejection of the refund claim as time-barred under Section 11B of the Central Excise Act.

This detailed analysis outlines the key issues raised in the judgment, the arguments presented by both parties, the legal interpretations applied, and the final decision rendered by the Tribunal based on established legal principles and precedents.