2000 (7) TMI 181 - AT - Central Excise

Summary

Issues involved:
Refund claim disallowed on the point of limitation under Section 11B of the Central Excise Act, 1944.

Analysis:
1. The appellants filed a refund claim of Rs. 1,90,936.00 after paying duties based on escalated prices due to fluctuation in exchange rates. The claim was rejected as time-barred by the Assistant Commissioner citing Section 11B.
2. The Commissioner (Appeals) upheld the rejection, stating that the time limit under Section 11B starts from the date of duty payment, regardless of provisional assessments. The Commissioner rejected the claim solely on the basis of limitation.
3. The appellants argued that the claim was not time-barred, citing precedents like their own case and the decision in A. Infrastructure Ltd. v. C.C.E. They contended that the relevant date for claiming refund should be the date of final assessment in cases of provisional assessments with escalation clauses.
4. The Tribunal found that in similar cases, the relevant date for claiming refund was the date of final assessment after provisional assessments, as per Rule 9B of the Central Excise Rules, 1944. The Tribunal held that in cases of provisional assessments with escalation clauses, the date of payment of duty is not the relevant date for claiming refund.
5. The Tribunal disagreed with the Assistant Commissioner's view that escalation should not operate retrospectively, stating that escalation clauses are meant to adjust prices based on factors in the original contract. The Tribunal remanded the case to the Commissioner (Appeals) to consider the merits of the case without rejecting the claim solely on the grounds of limitation. The impugned order was set aside for further review.