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Issues:
Challenge to appellate orders confirming rejection of refund claims by Collector of Central Excise, time-barred refund claims, interpretation of relevant date for computation of limitation period for refund claims under Central Excise Act, applicability of doctrine of unjust enrichment, consideration of Central Excise Rules, remand for rehearing and decision in accordance with law. Analysis: The petitioner challenged appellate orders confirming rejection of refund claims by Collector of Central Excise, Nadiad. The first refund claim of Rs. 17,299/- was rejected as time-barred under Section 11B(1) of the Central Excise Act, for being made six months after the relevant period. The second refund claim of Rs. 57,992/- was similarly rejected as time-barred. The petitioner contended that the relevant date for computation of limitation period should be the date of assessment by the proper officer, not the date of actual payment. The department reconsidered the classification of the product under a different sub-heading, affecting the limitation period for the refund claim. At the hearing, the petitioner's advocate argued based on Rules 173F, 173G, and 173-I, emphasizing that the assessment of duty is crucial for the limitation period calculation. The department's finalization of the RT 12 statement and the telex notification were highlighted as events impacting the limitation period for the refund claims. The Central Government's standing counsel supported the respondent authorities, citing the Explanation to Section 11B of the Central Excise Act to interpret the "relevant date" as the date of payment of duty. The High Court analyzed the Apex Court's decision in Hindustan Metal Pressing Works case, emphasizing the assessment process under Central Excise Rules and the adjustment of duty payments. Referring to the Mafatlal Industries Ltd. case, the Court clarified that recoveries or refunds after assessment orders are not governed by Sections 11A or 11B. The Court found that the respondent authorities did not consider the effect of relevant Rules and petitioner's submissions, leading to a decision to set aside the impugned orders and remand the matter for rehearing by the Assistant Collector in light of the Apex Court decisions and other relevant precedents. In conclusion, the petition was allowed, quashing the impugned orders and remanding the matter for rehearing and fresh decision on both refund claims in accordance with the law and relevant legal principles. The rule was made absolute with no order as to costs.
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