1990 (4) TMI 166 - AT - Central Excise

Summary

Issues:
1. Time limitation for filing a refund claim under erstwhile Rule 11 of the Central Excise Rules, 1944.
2. Requirement of issuing a show cause notice before rejecting a refund claim.
3. Computation of limitation period for claiming a refund under Rule 11.

Analysis:
1. The appeal dealt with the time limitation for filing a refund claim under erstwhile Rule 11 of the Central Excise Rules, 1944. The appellant submitted a refund claim for Metal containers clearances, which was rejected by the Assistant Collector as time-barred. The Collector of Central Excise (Appeals) allowed the refund, stating that the claim was within six months if counted from the close of the related financial year. The appellant contended that the limitation should start from the date of payment of duty, citing a judgment of the Kerala High Court. The respondent argued that the claim was rejected without issuing a show cause notice, violating natural justice principles.

2. The issue of issuing a show cause notice before rejecting a refund claim was raised by the respondent. The appellant argued that no show cause notice was necessary as the claimant had already provided grounds for refund in the claim. The Tribunal cited a previous judgment stating that Section 11B of the Act does not require a show cause notice for refund claims, as the claimant has the opportunity to appeal the rejection and present their case at higher levels. The Tribunal found no violation of natural justice in rejecting the claim without a show cause notice.

3. The computation of the limitation period for claiming a refund under Rule 11 was a crucial aspect of the appeal. The Andhra Pradesh High Court held that the limitation should be counted from the end of the financial year since the production exceeding the limit would only be known then. However, a Division Bench of the Kerala High Court rejected this argument, stating that the claim for refund should be based on goods worth not more than a specified amount, irrespective of the timing of clearance. The Tribunal concurred with this view, emphasizing that the limitation for refund should be counted from the date of clearances and from the end of the assessment year/financial year.

In conclusion, the Tribunal allowed the appeal, setting aside the order-in-appeal and restoring the Assistant Collector's order dated 19-9-1980, emphasizing the importance of adhering to the specific rules and judgments regarding time limitations for refund claims under the Central Excise Rules.