2003 (1) TMI 148 - AT - Central Excise

Summary

Issues:
1. Whether refund of Customs duty is available for HSD/Lubricants purchased from local suppliers by a 100% Export Oriented Undertaking.

Analysis:
The appeal involved the question of whether a company, operating as a 100% Export Oriented Undertaking, was entitled to a refund of Customs duty for HSD/Lubricants purchased locally from Indian Oil Corporation and Castrol India Ltd. The Appellant argued that they were exempt from Customs duty under specific Notifications and Circulars. They contended that the duty paid invoices from their suppliers served as sufficient evidence of payment, and they had calculated the Customs duty payable accurately. Additionally, they asserted that being recognized as an Export Oriented Undertaking, they did not require separate permission or approval from the Commissioner for such purchases. However, the Departmental Representative argued that the Appellants failed to produce the necessary duty paying documents and that the refund claims were time-barred. The Department emphasized that the Notifications in question applied to imported goods, which the Appellants had not procured.

The Tribunal carefully considered the arguments presented by both parties. It was noted that the Appellants had not imported the HSD/Lubricants and had not provided any duty paying documents to substantiate their claim. Moreover, a significant number of refund claims were found to be beyond the time limit specified in the Customs Act. The Tribunal highlighted the requirement under Section 27 of the Customs Act for refund applications to be made within a specified period from the date of duty payment, supported by specific forms and documents. The Tribunal agreed with the Departmental Representative that the Appellants had not fulfilled these requirements, as they solely relied on supplier invoices without providing the necessary documentation as per regulations. Consequently, the Tribunal upheld the decision to reject the appeal, as the Appellants had not met the essential criteria for claiming the refund of Customs duty.

In conclusion, the Tribunal's decision emphasized the importance of complying with statutory requirements and providing adequate documentation when seeking a refund of Customs duty. The case highlighted the necessity for claimants to adhere to the prescribed procedures and submit the requisite forms and evidence within the stipulated time frame to support their refund claims effectively.