1989 (11) TMI 162 - AT - Central Excise

Summary

Issues:
- Whether the refund claim of the Respondent is barred by limitation under Section 11B of the Central Excises & Salt Act, 1944.

Detailed Analysis:

Issue 1: Refund Claim Barred by Limitation
The case involved a small scale unit manufacturing refractory products entitled to exemption from excise duty under Notification No. 89/79-C.E. The Respondent's refund claim for the year 1979-80 was rejected as time-barred by the Assistant Collector. However, the Collector (Appeals) overturned this decision, stating that the limitation should run from the date of intimation of exemption entitlement by the Superintendent of Central Excise. The Department appealed this decision.

Analysis: The Central Excises & Salt Act, 1944, under Section 11B, sets a 6-month limitation from the date of duty payment for filing refund claims. The Respondent should have been aware of its exemption eligibility based on the previous year's clearance figures. The Kerala High Court precedent established that in cases of exemption tied to annual turnover, the limitation for refund claims starts from the date of clearance. As the Respondent filed the claim after 6 months from the end of the financial year 1979-80, the claim was deemed time-barred.

Issue 2: Case Law Comparison
The Respondent cited two cases to support the timeliness of their claim, but the Tribunal found these cases inapplicable. The first case dealt with provisional assessment when authorities were uncertain about product classification. The second case involved a notification granting concessions based on base period and clearances, where delays in determining these factors affected claim quantification.

Analysis: The cases cited by the Respondent did not align with the circumstances of the present case. Unlike those cases, the Respondent's claim was based on annual turnover for exemption under Notification No. 89/79-C.E. The Tribunal concluded that the claim should have been filed within 6 months from the duty payment date, which was not done, rendering the claim time-barred.

Conclusion:
The Tribunal set aside the Collector (Appeals) decision and allowed the Revenue's appeal, determining that the Respondent's refund claim was indeed barred by limitation under Section 11B of the Central Excises & Salt Act, 1944.