2004 (1) TMI 181 - AT - Central Excise

Summary

Issues:
Challenge to rejection of refund claim based on duty payment under protest and compliance with Rule 233B.

Analysis:
The judgment deals with the challenge to the rejection of a refund claim by the appellants, based on the ground that the duty was not paid under protest. The refundable amount of Rs. 70,194/- was paid via TR-6 Challan on 29-12-1993, and the refund was claimed on 11-11-1997 after finalization of a classification dispute by the Assistant Commissioner on 19-3-1996. The appellants contended that they paid the amount by affixing an "under protest" remark on the TR-6 Challan. However, the learned Commissioner (Appeals) held that the procedure under Rule 233B was not followed, and the claim was not lodged within 6 months from the date of finalization.

The appellate tribunal considered the matter and found that only a single payment under protest was involved in this case, made via TR-6 Challan with the protest endorsement. The tribunal noted that there were no further payments related to the protest, and therefore, endorsing the "payment under protest" remark on the TR-6 Challan was sufficient compliance with the duty payment under protest requirement. The tribunal emphasized that no other documents as envisaged under Rule 233B(4) were necessary, as the TR-6 Challan with the protest endorsement sufficed for compliance.

Consequently, the tribunal held that the endorsement of the protest remark on the TR-6 Challan was adequate compliance with the payment under protest, and the limitation period could not be applied in this case. Therefore, the orders passed by the lower authorities rejecting the refund claim were set aside, and the appeal was allowed with consequential relief in accordance with the law. The Assistant Commissioner was directed to grant the consequential relief within 3 months from the date of the tribunal's order.