1991 (7) TMI 210 - AT - Central Excise

Summary

Issues:
- Refund claim rejected by Assistant Collector on grounds of limitation and unjust enrichment.
- Appeal allowed by Appellate Collector based on limitation period calculation.
- Dispute regarding the relevant date for refund under Notification 83/83, dated 1-3-1983.

Analysis:
1. The appeal was filed against the order passed by the Collector of Central Excise (Appeals) by the Collector of Central Excise, Vadodara. The case involved M/s. Rubamine Processors engaged in the manufacture of Zinc Oxide claiming exemption under different notifications for the years 1983-84 and 1984-85. The dispute arose when the assessee filed a refund claim for the year 1984-85 due to an error in forecasting their total clearances value. The Assistant Collector rejected the refund claim citing limitation of time and unjust enrichment on the part of the assessee.

2. The Appellate Collector allowed the appeal, stating that the limitation period would count from the date of closure of the financial year and not from the date of payment of duty. The Department contested this decision, arguing that the time limit of six months from the date of payment of duty should prevail, as per Section 11B of the Central Excises & Salt Act, 1944. The Department relied on the Tribunal's decision in a similar case to support their argument.

3. The respondents, represented by their counsel, contended that the Assistant Collector had not rejected their claim based on limitation but on the grounds of unjust enrichment. They cited relevant case law to support their argument that statutory authorities cannot deny refunds on the basis of unjust enrichment when due under Section 11B of the Act. The counsel also argued that the Department cannot reject a valid refund claim solely because it was not initially claimed at the time of filing the classification list.

4. The Tribunal carefully considered the submissions of both parties and addressed the issue of limitation in the appeal. The Tribunal clarified that the relevant date for claiming a refund under Notification 83/83, dated 1-3-1983 should be the date of payment of duty, as per Section 11B of the Act. The Tribunal emphasized that limitation is an integral part of the refund process and must be adhered to. Therefore, the order of the Collector (Appeals) was modified to state that the respondents would be eligible for a refund subject to the six-month limitation period from the date of payment of duty. The appeal was disposed of accordingly.