2010 (3) TMI 472 - HC - Central Excise

Refund-Limitation- The respondent is engaged in manufacturing of motors and transformers falling under heading 85 of Central Excise Tariff Act, 1985. Refund held as admissible in impugned order on goods returned by buyer. Department contending that refund claim hit by time bar. Held that- refund claim held by all authorities as within time and filed only after receiving goods back. Refund claim not barred by time.

Summary

Issues:
Claim for refund barred by limitations and provisions of Central Excise Act not considered.

Analysis:
The case involved the appellant, who contended that the claim for refund made by the respondent was barred by limitations and that the provisions of Section 11B of the Central Excise Act were not considered. The respondent, engaged in manufacturing motors and transformers, had sold certain material to the Indian Railway and paid duty on it. Subsequently, the transformer supplied was returned, and the respondent requested a refund of the duty paid. The Department contended that the respondent was not eligible for a refund as the goods were received back. Despite this, the Deputy Commissioner, the Commissioner of Central Excise (Appeals), and the CESTAT all allowed the refund application. The main argument of the appellant was that the claim for refund was time-barred, but the authorities consistently held that the application was within the time limit and made after receiving the returned goods.

The High Court, after considering the orders of all the authorities, held that the application for refund by the respondent was not barred by time. Therefore, the Court concluded that no substantial questions of law arose in the appeal and dismissed the appeal accordingly. The judgment emphasized that the authorities had correctly determined that the refund application was timely and valid, thereby upholding the decisions made in favor of the respondent throughout the appeals process.