1988 (3) TMI 200 - AT - Central Excise

Summary

Issues:
Whether unrebated rate of duty was payable on Aviation Turbine Fuel supplied to foreign-bound aircrafts in bond under Rule 13 of the Central Excise Rules, 1944? Whether the demand raised against the Corporation is barred by limitation of time?

Analysis:
The judgment by the Appellate Tribunal CEGAT, New Delhi addressed the issue of whether unrebated rate of duty was payable on Aviation Turbine Fuel supplied to foreign-bound aircrafts in bond under Rule 13 of the Central Excise Rules, 1944. The Tribunal considered arguments from both sides, with the appellant-Collector contending that previous decisions favored the Revenue, while the respondents argued for reconsideration based on limitations and strict construction of the notification. The Tribunal referred to earlier decisions involving similar issues and highlighted the Delhi High Court's stance on duty payment for exports under Rule 13, emphasizing the requirement to pay duty in line with Rule 12. The Tribunal rejected the contention that the notification under Rule 12 did not apply to Rule 13 exports, citing the Delhi High Court's judgment. Consequently, the Tribunal upheld the duty payment requirement for Aviation Turbine Fuel supplied under Rule 13.

Regarding the issue of limitation, the Tribunal noted that a significant portion of the demand against the Corporation was potentially time-barred. The Tribunal observed that the Collector (Appeals) did not provide findings on the limitation plea, necessitating a remand to the lower authority for a detailed examination of the limitation under Section 11A of the Central Excises and Salt Act, 1944. Despite upholding the duty payment requirement, the Tribunal set aside the impugned order and remanded the matters to the Assistant Collector for a fresh examination specifically on the limitation aspect. The Tribunal's decision aimed to ensure a comprehensive review of the demands raised against the respondents to determine if they were indeed barred by limitation under the relevant legal provisions.

In conclusion, the Tribunal's judgment clarified the duty payment obligations for Aviation Turbine Fuel supplied to foreign-bound aircrafts under Rule 13 and highlighted the need for a thorough assessment of the limitation issue concerning the demands raised against the respondents. The decision underscored the legal precedents and the requirement to follow the Delhi High Court's interpretation of duty payment rules in similar export scenarios, ensuring a consistent application of the law in the present case.