1986 (1) TMI 258 - AT - Central Excise

Summary

Issues:
Eligibility of the appellants for incentive scheme under Notification No. 198/76 dated 16-6-1976 for the period 27-10-1976 to 4-1-1977.

Detailed Analysis:
The Assistant Collector of Central Excise rejected the appellant's claim for refund for the period 27-10-1976 to 4-1-1977 citing limitation under Rule 11 of Central Excise Rules, 1944. However, he granted the refund for the period 5-1-1977 to 31-3-1977. The Collector of Central Excise (Appeals) Bombay upheld the rejection in appeal. The issue revolved around the eligibility of the appellants for the incentive scheme under Notification No. 198/76 dated 16-6-1976 for their product synthetic resins. The appellants filed a declaration in terms of the notification on 12-7-1976, which was approved by the Range Superintendent on 19-7-1976. Subsequently, the approval was kept in abeyance pending finalization of the price index. The appellants later submitted revised information regarding excisability of epoxy resins and clearance of two units. The appellants also expressed their intention to claim a refund for excess production and clearance during the financial year 1977-78. The appellants cited a Tribunal decision in support of their claim, emphasizing that the mere delay in lodging the refund claim should not render it time-barred.

The Departmental Representative argued that the appellant's declaration was approved only on 14-2-1978, and the revised declaration submitted on 7-12-1977 did not constitute a valid declaration for the incentive scheme under the notification. Therefore, the claim was rightly rejected as time-barred by the lower authorities. When questioned by the Bench about the significance of the declaration filed on 12-7-1976, the Departmental Representative had no substantial response. The Bench further inquired whether considering the declaration filed on 12-7-1976 as staking a claim for the incentive scheme would impact the time-barred nature of the refund claim. The Departmental Representative agreed that based on the Tribunal's decision, the claim would not be time-barred if computed from 12-7-1976.

The Tribunal referred to its previous decision on the incentive scheme under the same notification, emphasizing that the period in question was before the amendment of Rule 11 of Central Excise Rules on 6-8-1977. Following this precedent, the Tribunal concluded that the rejection of the refund claim for the period 27-10-1976 to 4-1-1977 by the lower authorities could not be upheld. The Tribunal set aside this part of the order, modified it, and granted the refund to the appellants for the mentioned period, thereby allowing the appeal.