1987 (4) TMI 330 - AT - Central Excise

Summary

Issues: Refund claims for duty paid, time bar for filing claims, utilization of duty credit for future clearances, practical difficulties in preparing input-output ratio statement, retrospective approval of input-output ratio.

The case involved the appellant firm manufacturing grinding wheels using duty paid abrasive grain. The appellant sought to avail benefits under Notification No. 178/77 but faced challenges in determining the input-output ratio for each unit of the finished product. After resolving these issues with departmental officers, they submitted the statement on 30-5-1979, approved on 30-7-1979 under a new notification. The appellant filed refund claims for unavailed duty credit, rejected as time-barred beyond six months from duty payment (1-7-1977 to 31-12-1978). The lower appellate authority allowed refunds for specific periods based on filing dates, considering the time limitation. The appellant argued for utilizing duty credit for future clearances, emphasizing practical difficulties in preparing the ratio statement. The department contended the cases were about credit utilization, not cash refunds. The Tribunal agreed with the appellant, stating that approval of the ratio statement should relate back to the initial application date. Despite challenges in meeting notification requirements, substantive benefits should not be denied if duty-paid inputs were used in manufacturing. The Tribunal referenced precedents like Sundram Fasteners Ltd. v. CCE Madras [1987 E.L.T. 275]. Consequently, the Tribunal allowed crediting duty paid on inputs from 11-7-1977 for future duty payments on grinding wheels, disposing of the appeals accordingly.