1985 (9) TMI 200 - AT - Central Excise

Summary

Issues:
Appeal against rejection of refund claims for duty paid on Compreg, jurisdiction to grant refund under Rule 11, applicability of Limitation Act to quasi-judicial proceedings, interpretation of duty under Rule 2(v), time-bar under Rule 11 for refund claims.

Analysis:
The judgment involves the disposal of three Orders-in-Original by the Appellate Collector concerning refund claims for duty paid on Compreg. The appellants manufactured plywood and Compreg, with the department seeking to charge excise duty on Compreg under Item 16-B of the Central Excise Tariff. The appellants protested this classification, leading to a series of appeals and legal actions. The Central Government later clarified that Compreg was not excisable, prompting the appellants to seek refunds for duty paid from 1962 to December 1973. The Asstt. Collector rejected the refund claims, citing various grounds, including the non-applicability of the Limitation Act to quasi-judicial proceedings and the absence of provisions for refund of non-excisable items.

The appellate Collector upheld the rejection, emphasizing that the amendment removing Compreg from the concessional list was not retrospective. The appellants pursued additional legal remedies, including a writ petition in the Kerala High Court. During the proceedings, both parties agreed that Compreg was not excisable during the relevant period. The department's main objection was that amounts collected on Compreg could not be refunded as they did not constitute "duty" under Rule 11 or the Act. The department relied on a Mysore High Court judgment and Rule 2(v) to support its stance.

The Tribunal deliberated on the issue, considering the department's arguments and the appellants' contentions regarding the refund. The Tribunal noted that the department's collection of duty on Compreg was due to an erroneous interpretation, making it a case of error or misconstruction. The Tribunal differentiated the present case from the Mysore High Court judgment, emphasizing the unique circumstances. Additionally, the Tribunal addressed the time-bar under Rule 11, allowing refunds only from the date of the protest letter in 1963 onwards, deeming claims before that time as time-barred.

In the final decision, the Tribunal allowed the appeals, granting relief to the appellants from 8-7-1963 onwards. The judgment highlighted the jurisdiction and competence of the Asstt. Collector to grant refunds under Rule 11, considering the factual and legal complexities of the case.