1995 (1) TMI 236 - AT - Central Excise

Summary

Issues Involved:
The appeal arises from the rejection of a refund claim as time-barred u/s 11B of the Central Excises and Salt Act, 1944.

Refund Claim and Limitation:
The appellants, engaged in manufacturing wooden articles, sought a refund of duty paid at 9% and 12% ad valorem from 1-4-1985 to 5-12-1985. The M.P. Housing Board, their controlling Board, communicated on 16-5-1985 that their clearances qualified for exemption. Subsequently, on 10-1-1986, the Board wrote to the Collector of Central Excise, Indore, regarding the refund. The appellants argued that the letter of 10-1-1986 should be considered as the refund application, not the formal application filed on 17-2-1987. They relied on Tribunal decisions to support their claim, emphasizing the importance of the 10-1-1986 letter as an application for refund.

Decision and Rationale:
The Departmental Representative contended that the refund claim filed on 17-2-1987 was time-barred u/s 11B. However, the Tribunal considered the sequence of events, noting that the letter of 10-1-1986 clearly indicated the appellants' eligibility for exemption and their request for a refund. Referring to previous Tribunal decisions, the Tribunal held that the letter of 10-1-1986 should be treated as an application for refund. Consequently, the appellants were deemed entitled to any refund they were eligible for under the law within six months from the date of the letter. The appeal was disposed of accordingly.