1996 (7) TMI 319 - AT - Central Excise

Summary

Issues:
Claim for refund beyond the statutory period of limitation under Section 11B of the Act.

Analysis:
The appeal before the Appellate Tribunal CEGAT, Mumbai was directed against an order passed by the Commissioner of Central Excise (Appeals), Ahmedabad, allowing a refund claim for double payment of duty. The appellant, represented by the ld. SDR, argued that the claim was filed beyond the statutory period of six months as prescribed under Section 11B of the Act. The Commissioner (Appeals) had considered the date of assessment of RT 12 returns as the relevant date for computing the limitation period, a stance contested by the appellant. The appellant relied on various legal precedents, including decisions of the Supreme Court, to support their argument that the date of actual payment should be the relevant date for calculating the limitation period for refund claims.

The Excise Officer, representing the respondents, acknowledged the double payment of duty but contended that the limitation period should start from the finalization of assessment under Rule 173-I, citing precedents to support this position. However, the Tribunal noted that the claim for refund was indeed filed after the expiration of six months from the date of payment, as specified under Section 11B. The Tribunal emphasized that there was no provision in the law to consider the date of assessment of RT 12 returns as the relevant date for limitation calculation. The Tribunal rejected the arguments presented by both parties regarding the starting point for the limitation period.

Ultimately, the Tribunal held that despite the respondents being eligible for a refund on equitable grounds, the claim was barred by limitation due to not being filed within the statutory period of six months from the date of payment. Consequently, the order of the Commissioner (Appeals) allowing the refund claim was set aside, and the appeal from the department was allowed. The decision reaffirmed the importance of adhering to the statutory provisions, specifically Section 11B, for filing refund claims within the prescribed time limit, even in cases of double payment of duty.