1999 (4) TMI 101 - AT - Central Excise

Summary

Issues involved:
Whether the provisions of Central Duties of Excise (Retrospective Exemption) Act, 1986 are applicable in respect of refund of duty paid after the issue of the Notification providing for exemption.

Analysis:

1. Issue of Applicability of Central Duties of Excise (Retrospective Exemption) Act, 1986:
The main issue in this case revolves around the applicability of the Central Duties of Excise (Retrospective Exemption) Act, 1986 to a refund claim made by M/s. Indian Oil Corporation. The Revenue argued that the provisions of the said Act were not applicable to the refund for the period in question, as the refund pertained to a period when the Notification providing for exemption was already in force. The Assistant Collector had confirmed a demand for duty, citing Section 11B of the Central Excise Act. However, the Collector (Appeals) allowed the appeal, stating that the claim arose from the Central Duties of Excise (Retrospective Exemption) Act and should be governed by its provisions.

2. Arguments and Counterarguments:
The Revenue contended that the refund claim was not made under sub-section (2) of the said Act, and therefore, the normal limitation period under Section 11-B should apply. On the other hand, M/s. Indian Oil Corporation argued that their customers had to complete certain processes after the amendment of the Notification, which delayed the relevant date for their claim. They claimed that assessments were provisional and that the Act should apply since they had submitted the refund claim with effect from the date of the amendment.

3. Decision and Rationale:
After considering the submissions, the Tribunal found that M/s. Indian Oil Corporation failed to demonstrate that the assessments for the relevant period were provisional as per the Central Excise Rules. The refund claims were filed after the expiry of the six-month period from the date of duty payment, and the period in question was after the issue of the amending Notification. As per Section 2(2) of the Central Duties of Excise (Retrospective Exemption) Act, duties collected but which would not have been collected if the notification had been in force must be refunded, with a time limit for filing refund applications. Since the amount confirmed pertained to a period prospective from the date of the notification, the Act's provisions were deemed inapplicable, leading to the setting aside of the Collector (Appeals) order and allowing the appeal filed by the Revenue.