1991 (1) TMI 288 - AT - Central Excise

Summary

Issues:
1. Appeal against rejection of refund claim by Collector of Central Excise.
2. Whether duty paid by respondents was leviable in accordance with law.
3. Whether the refund claim was barred by limitation.

Analysis:
1. The appeal was filed by the Collector of Central Excise against the rejection of a refund claim by the Collector (Appeals). The respondents had claimed a refund for products falling under Item No. 11B of the Central Excises and Salt Act, 1944, stating that they were produced out of duty-paid goods. The Assistant Collector rejected the claim as being beyond the limitation period. The Collector (Appeals) allowed the respondents' appeal, leading to the current appeal.

2. The Department argued that duty was correctly levied on the goods, citing relevant judgments. The respondents contended that the duty was not mentioned in the show cause notice or the original order, focusing on the limitation issue. The Tribunal noted that the show cause notice only mentioned limitation as the ground for rejection, and thus, the issue of duty leviability could not be raised for the first time in the appeal.

3. Regarding the limitation issue, the claim was made in 1975 but settled in 1980. The Tribunal analyzed the relevant rules and notifications to determine the applicability of the limitation period. Referring to a previous decision, the Tribunal concluded that since the application was filed before the finalization of the assessment, it was not barred by limitation. The Tribunal upheld the Collector (Appeals) order, dismissing the appeal.

In conclusion, the Tribunal dismissed the appeal, ruling in favor of the respondents on the limitation issue and emphasizing that new grounds cannot be raised beyond those mentioned in the show cause notice.