1990 (9) TMI 153 - AT - Central Excise

Summary

Issues Involved:
1. Whether the refund application was filed within the period specified under Section 11B of the Central Excises & Salt Act, 1944.
2. Whether the appellants were eligible for exemption under Notification No. 80/80-CE.

Issue-wise Detailed Analysis:

1. Timeliness of Refund Application under Section 11B:
The appellants argued that the relevant date for filing the refund claim should be the end of the financial year, not the date of duty payment. They contended that it was only after the financial year ended that they could accurately determine if their clearances exceeded Rs. 15 lakh, thus making them eligible for the refund. The Collector of Central Excise (Appeals), Madras, however, held that the relevant date under Section 11B is the date of payment of duty, not the close of the financial year. The Tribunal noted that Section 11B stipulates that a refund application must be filed within six months from the relevant date, defined as the date of payment of duty, unless otherwise specified. The Tribunal cited the Division Bench of the Kerala High Court in T.T. Plunny Prop. Royal Smiths, Kunnamkulam, which rejected the contention that the relevant date should be the end of the financial year. The Tribunal concluded that the appellants' refund claim, filed on 14-3-1983 for duty paid prior to 14-9-1982, was time-barred as it was filed after the six-month period.

2. Eligibility for Exemption under Notification No. 80/80-CE:
The appellants claimed exemption under Notification No. 80/80-CE, which allows certain manufacturers to clear goods without paying duty up to a specified limit if they had not cleared any specified goods in the preceding financial year and filed a declaration in advance. The Collector of Central Excise (Appeals) found that the appellants did not satisfy the conditions stipulated in the notification as they failed to file the required declaration before availing the exemption. The Tribunal noted that the notification requires the declaration to be filed in advance and not at the time of the refund claim. The Tribunal also referenced the Kerala High Court's decision, which emphasized the importance of adhering to the statutory time limits and procedural requirements for claiming exemptions and refunds. The Tribunal concluded that the appellants were not entitled to the exemption under Notification No. 80/80-CE due to non-compliance with the notification's conditions.

Separate Judgments Delivered by Judges:
- Member (Judicial): Agreed with the Collector of Central Excise (Appeals) that the refund claim was time-barred and that the appellants did not meet the conditions for exemption under Notification No. 80/80-CE.
- Member (Technical): Disagreed, arguing that the refund claim was timely as it was filed within six months of the end of the financial year, based on the Tribunal's previous decisions and the specific language of the exemption notification.
- President (Third Member): Agreed with the Member (Judicial) that the refund application was barred by limitation and did not express an opinion on the applicability of the exemption notification, as the Member (Judicial) had not addressed this point.

Final Order:
In view of the majority opinion, the refund claim was barred by limitation, and the appeal was accordingly rejected.