1992 (11) TMI 207 - AT - Central Excise

Summary

Issues:
Refund claim rejection based on failure to produce duty paying documents, Scope of appellate authority in reviewing lower authorities' orders, Requirement of producing proof of payment of duty on raw material for exemption under Notification No. 75/67, Necessity of filing D-3 intimations, Time-barred refund claim.

Analysis:
The appellants, engaged in manufacturing Iron and Steel products, filed a refund claim for not availing set off under Notification No. 7567-C.E. and paying full duty on goods cleared. The Assistant Collector rejected the claim for not producing proof of duty payment on raw material. The Collector (Appeals) remanded the case to verify D-3 intimations and held part of the claim time-barred. The appellants argued that the Collector (Appeals) erred by introducing new grounds outside the original order's scope. The Show Cause Notice and Assistant Collector's order focused on lack of proof of duty payment on raw material only. The appellate authority should judge based on the reasons mentioned in the original order. The Collector (Appeals) correctly noted that proof of payment for raw material was not required for availing the exemption under Notification No. 75/67, citing legal precedents. However, the Collector (Appeals) erred by introducing new requirements like filing D-3 intimations and time-barred claims not mentioned in the Show Cause Notice. The impugned orders were unsustainable as they deviated from the original grounds for rejection.

The appeal was allowed, granting relief to the appellants as per the law.