2004 (3) TMI 223 - AT - Central Excise

Summary

Issues Involved:
1. Entitlement to an interest-free period of six months for goods warehoused prior to 1-6-2001.
2. Determination of the date of payment - whether it is the date of presentation of the cheque with TR-6 challan to the bank or the date of credit of the amount into the Government account.
3. Time-bar applicability on the refund claim of Rs. 101/- against two ex-bond Bills of Entry.

Detailed Analysis:

Issue 1: Entitlement to an Interest-Free Period of Six Months for Goods Warehoused Prior to 1-6-2001
The appellants argued that the amendment to Section 61(2)(ii) of the Customs Act, which reduced the interest-free warehousing period from six months to thirty days effective from 1-6-2001, should not apply to goods warehoused prior to this date. They cited the principle that statutes and statutory rules are prospective unless explicitly stated otherwise, referencing the Supreme Court's decision in P. Mahendran & Ors. v. State of Karnataka & Ors. and the Tribunal's decision in Collector of Customs & Central Excise v. J.K. Synthetics Ltd. The Tribunal agreed with the appellants, holding that the interest-free period of six months under the pre-amendment provision of Section 61(2)(ii) should apply to goods warehoused before 1-6-2001. The Tribunal emphasized that retrospective application would contravene established legal principles and cause unnecessary hardship.

Issue 2: Determination of the Date of Payment
The Commissioner (Appeals) decided in favor of the appellants, ruling that the date of payment should be considered as the date of presentation of the cheque with TR-6 challan to the bank rather than the date of credit of the amount into the Government account. This decision was not contested further in the Tribunal, and thus, it remains upheld.

Issue 3: Time-Bar Applicability on the Refund Claim of Rs. 101/-
The appellants' refund claim of Rs. 101/- was rejected by the Assistant Commissioner as time-barred under Section 27 of the Customs Act. The Tribunal noted that the payment against the ex-bond Bills of Entry was made on 1-5-2001, but the refund claim was filed only on 4-12-2001. The appellants contended that the payment was made under protest, thus not subject to the limitation period. However, the Tribunal found no evidence of such protest and upheld the Commissioner (Appeals)' decision to reject the refund claim as time-barred.

Conclusion:
The Tribunal set aside the impugned order except for the refund claim of Rs. 101/-, which was upheld as time-barred. The Tribunal affirmed that the interest-free warehousing period of six months applies to goods warehoused before 1-6-2001, and the date of payment is the date of presentation of the cheque with TR-6 challan to the bank.