2022 (12) TMI 1186 - AT - Central Excise

Rejection of refund claim - time bar under the provisions of Section 11 (B) of the Central Excise Act - HELD THAT - The appellant has attempted to increase their refund claim pursuant to remand in the first round by the Commissioner (Appeals) in February, 2019. It is held that the claim had become time barred for the period 1.7.2012 to 30.06.2013, as has been held by the Commissioner (Appeals). Thus, there being no merits in this appeal, the same is dismissed.

Summary

Issues: Calculation of refund amount, maintenance of separate accounts, time limitation for refund claim

Calculation of Refund Amount:
The appellant, a manufacturer of tower material, filed an appeal claiming that the refund amount was incorrectly calculated by the Revenue, resulting in a lesser amount being granted. The dispute arose from the appellant not maintaining separate accounts, leading to a demand calculated by the Revenue based on a 6% reversal on trading turnover. The appellant deposited the service tax amount plus interest totaling Rs. 18,55,418/- as calculated by the Revenue. Subsequently, the appellant filed a refund claim of Rs. 9,22,156/-, which was rejected by the Adjudicating Authority. The Commissioner (Appeals) allowed the appeal by remanding the case for the determination of liability and refund of the excess credit paid by the appellant.

Maintenance of Separate Accounts:
The issue of not maintaining separate accounts by the appellant led to a demand calculated by the Revenue based on a percentage reversal on the trading turnover. This lack of separate accounts resulted in a dispute regarding the calculation of the refund amount and the subsequent rejection of the initial refund claim by the Adjudicating Authority.

Time Limitation for Refund Claim:
The appellant revised their refund claim following the remand, but the Adjudicating Authority sanctioned a refund of Rs. 5,75,265/-, ignoring the additional claim made in February 2019 as time-barred. The Commissioner (Appeals) upheld this decision, stating that the appellant could not include the amount refundable for the period 1st July 2012 to 30th June 2013 due to it being time-barred under the provisions of Section 11(B) of the Central Excise Act. The appellant's attempt to increase the refund claim for this period was dismissed, and the appeal was ultimately rejected by the Tribunal.

This detailed analysis of the judgment covers the issues related to the calculation of the refund amount, the impact of not maintaining separate accounts, and the time limitation for the refund claim, providing a comprehensive understanding of the legal proceedings and the final decision reached by the Tribunal.