1985 (11) TMI 150 - AT - Central Excise

Issues Involved:
1. Application of Section 11B of the Central Excises & Salt Act, 1944.
2. Provisional vs. Final Assessment under the Self Removal Procedure (SRP).
3. Relevant Date for Computing Time Limit for Refund Claims.
4. Interpretation of Rules 173B, 173C, 173F, 173G, and 173-I under the Central Excise Rules, 1944.
5. Judicial Precedents on Provisional Payments and Assessments.

Issue-wise Detailed Analysis:

1. Application of Section 11B of the Central Excises & Salt Act, 1944:
The appellant sought a refund of Rs. 57,941.56 for duty paid on burnt lime and cyclone dust. The Assistant Collector limited the refund to payments made within six months of the claim date, citing Section 11B of the Act. The appellant's explanation for the delay due to clerical work was not accepted. The Collector of Central Excise (Appeals) upheld this decision, emphasizing that the time limit should be computed from the date of duty payment, not the completion of the assessment memo.

2. Provisional vs. Final Assessment under the Self Removal Procedure (SRP):
The appellant argued that payments made under the SRP were provisional until the R.T. 12 return was approved and finalized. The appellant's advocate referred to Section 3 and Section 11A of the Act, and various judicial precedents to support the claim that payments under the SRP were provisional. However, the SDR countered that Rule 9B specifically provides for provisional assessment, and payments under SRP were final, subject to corrections under Rule 173-I.

3. Relevant Date for Computing Time Limit for Refund Claims:
The appellant contended that the relevant date for computing the time limit for refund claims should be the date of final assessment of the R.T. 12 return by the proper officer, as per Rule 173-I. The SDR argued that the payment made under SRP was final, and the relevant date should be the date of duty payment. The tribunal held that the process of assessment under SRP, which includes the approval of classification and price lists by proper officers, constitutes a final assessment, and the relevant date for refund claims is the date of duty payment.

4. Interpretation of Rules 173B, 173C, 173F, 173G, and 173-I under the Central Excise Rules, 1944:
The tribunal examined the provisions of Chapter VII-A, including Rules 173B, 173C, 173F, 173G, and 173-I. It was noted that these rules enable self-assessment by the manufacturer, guided by proper officers' approvals of classification and price lists. The tribunal concluded that the process of assessment and levy is complete when the manufacturer debits the duty to the PLA based on approved lists. The submission of the monthly return and its verification is a secondary check, not a provisional assessment.

5. Judicial Precedents on Provisional Payments and Assessments:
The appellant cited several judicial precedents, including decisions from the Madras High Court, Delhi High Court, Calcutta High Court, and the Supreme Court, to argue that payments under SRP were provisional. The tribunal distinguished these cases, noting that they dealt with different contexts or did not directly address the nature of payments under SRP. The tribunal emphasized that the approval of classification and price lists by proper officers is a crucial part of the assessment process, making the payments final, not provisional.

Conclusion:
The tribunal concluded that the provisions of Rule 11B were correctly applied to the appellant's refund claim. The duty payments made under the Self Removal Procedure were final, not provisional, and the relevant date for computing the time limit for refund claims is the date of duty payment. Consequently, the appeal was dismissed.

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