1974 (3) TMI 23 - HC - Central Excise

Summary

Issues:
1. Interpretation of excise duty exemption notification for polythelene products.
2. Eligibility for refund of excise duty paid erroneously.
3. Applicability of set-off for excise duty paid erroneously.
4. Compliance with refund procedure under Rule 11 of Central Excise Rules.

Analysis:
1. The petitioner, a firm manufacturing polythelene products, claimed exemption from excise duty based on notification Ext. P2. The counter-affidavit revealed that previous exemptions were withdrawn by Ext. R4 before Ext. P2 was issued. Thus, there was no exemption from 1-5-1970 to 7-6-1970. The petitioner sought a refund for duty paid during this period, which was contested by the respondents. The court acknowledged the absence of exemption initially but did not grant relief based on subsequent notifications.

2. The petitioner argued for a refund of excise duty paid erroneously from 1-5-1970 to 16-7-1970 and set-off against a subsequent demand. However, the respondents contended that statutory procedures for refund must be followed, and set-off was not automatic. The court upheld the enforceability of the demand for Rs. 2,213.94 and emphasized that the refund claim should be pursued separately according to the prescribed rules.

3. The court addressed the question of set-off for excise duty paid on products from 8-6-1970 to 17-6-1970. It highlighted the importance of following Rule 11 of the Central Excise Rules for seeking a refund. The petitioner had not followed the prescribed procedure for refund, and any challenge to the rule was deemed irrelevant in the absence of a proper foundation in the petition. The court emphasized that parties must seek appropriate remedies for refund claims within the legal framework.

4. Ultimately, the court dismissed the original petition, emphasizing that the demand for Rs. 2,213.94 was enforceable and not affected by the decision. The petitioner's failure to comply with the refund procedure under Rule 11 of the Central Excise Rules led to the dismissal of the petition without costs, highlighting the importance of following statutory provisions for refund claims.