1991 (3) TMI 163 - AT - Central Excise

Summary

Issues Involved:

1. Provisional Assessment and Refund Claims
2. Limitation Period for Refund Claims
3. Classification and Valuation Disputes

Summary:

1. Provisional Assessment and Refund Claims:
The respondents, M/s. P.M.T. Machine Tools Automatics Pvt. Ltd., filed for a refund of Rs. 11,061.30, arguing that duty was paid under the incorrect Tariff Item (T.I. 52 instead of T.I. 68). They claimed that the assessments were provisional, and thus, the six-month limitation period should start from the date of final assessment. The Assistant Collector rejected this, stating that the duty was correctly paid and the assessments were not provisional concerning the rate of duty or classification.

2. Limitation Period for Refund Claims:
The Collector of Central Excise (Appeals) allowed the refund, determining that the six-month limitation should begin from the finalization of the provisional assessments, which occurred in July 1981. The revenue appealed, arguing that the refund claims were time-barred as they were filed much later than six months from the date of duty payment. The Tribunal examined Rule 11 and Section 11B, which state that the limitation period starts from the final assessment date when duty is paid provisionally.

3. Classification and Valuation Disputes:
The Tribunal referenced several judgments, including Supreme Court decisions, emphasizing that provisional assessments are provisional for all purposes, irrespective of whether the dispute is about valuation or rate of duty. The Tribunal concluded that the refund claims were filed within the limitation period, as the assessments were provisional and finalization occurred later. Consequently, the appeals by the revenue were dismissed.