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Issues:
1. Refusal of refund claim for excise duty paid at a higher rate. 2. Application for refund beyond the period of limitation. 3. Interpretation of rules regarding refund of excise duty. 4. Consideration of delay and laches in refund claims. Detailed Analysis: Issue 1: The petitioner sought a refund of excise duty paid at a higher rate for the period from June 1, 1970, to March 31, 1971. The Assistant Collector and the Appellate Collector rejected the refund claim, citing rejection of the petitioner's claim for concessional assessment at 4% rate. The Government of India partially allowed the refund claim but dismissed it for the period from April 1970 to September 1971, citing limitation under rule 11 read with rule 173J of the Central Excise Rules, 1944. Issue 2: The non-petitioners contended that the refund claim was time-barred, relying on the principle that a writ petition for refund must be filed within the period of limitation, usually within three years of the knowledge of the mistake. The court referred to a previous case law and highlighted that the limitation period starts from the date on which the mistake becomes known to the party. However, it was noted that the court has discretion to entertain such petitions based on the facts and circumstances of each case. Issue 3: The court analyzed previous judgments and observed that the petitioner was entitled to the refund of the excise duty difference between 5% and 4% for the relevant period. The court held that the order rejecting the refund claim on the ground of limitation under rule 11 read with rule 173J was not sustainable. The court directed the non-petitioners to refund the amount within a specified time frame or adjust it against future duties payable by the petitioner. Issue 4: The court considered the delay in filing the refund claim and emphasized that the writ petition cannot be dismissed solely on the ground of delay and laches. It was highlighted that the court can intervene to prevent hardship to a party and grant relief for the refund of illegally collected amounts, especially if the excise duty was realized unlawfully. The court emphasized that the petitioner had diligently pursued the remedy and was entitled to the refund based on the revised classification list and subsequent orders. In conclusion, the court allowed the writ petition, quashed the orders declining the refund, and directed the non-petitioners to refund the excise duty difference paid by the petitioner. The court also provided a timeline for the refund payment or adjustment against future duties. The parties were left to bear their own costs in the circumstances of the case.
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