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Issues:
Dispute over refund claims based on inclusion of interest on receivables in assessable value and duty paid, non-compliance with Rule 233B of Central Excise Rules, protest letter delivery to Superintendent instead of Assistant Collector, limitation period under Section 11B of the Central Excise Act, 1944. Analysis: The dispute revolves around refund claims made by the appellant due to interest on receivables being included in the assessable value and duty paid, contrary to the Supreme Court ruling in MRF Limited case. The Assistant Collector rejected the claims citing various grounds, including lack of evidence regarding interest inclusion in invoice price and non-compliance with Rule 233B. The Collector (Appeals) focused on procedural lapses under Rule 233B rather than the substantive issues raised by the Assistant Collector. Both authorities acknowledged the potential time bar on refund claims for duties paid before the prescribed date. The crux of the matter lies in the interpretation of the Supreme Court decision in the MRF Limited case, which clarified that interest on receivables should not form part of the assessable value. The appellant contends that the invoice price reflected a credit price with an interest element, necessitating conversion to a cash price for duty calculation. However, the Assistant Collector found a lack of documentary evidence supporting the appellant's claim, emphasizing the need for verification. Regarding procedural compliance, Rule 233B outlines the process for paying duty under protest, requiring a letter to the Proper Officer with grounds stated. The rule also mandates detailed representation if an appeal or revision is unavailable against the preceding decision. The Tribunal and various court decisions have deemed Rule 233B as directory rather than mandatory, emphasizing substantial compliance. In this case, the protest letter was delivered to the Superintendent instead of the Assistant Collector, raising concerns about compliance with Rule 233B. However, the Tribunal held that substantial compliance suffices, especially when the protest letter contains detailed reasons. The rejection of the protest based on the absence of detailed representation was deemed unsustainable without evidence of inadequate reasoning in the protest letter. Ultimately, the Tribunal concluded that there was substantial compliance with Rule 233B, warranting a remand of the cases to the adjudicating authority for fresh consideration of the refund claims. The appellant was granted an opportunity to provide necessary materials and a personal hearing to address the factual aspects raised, ensuring a fair assessment of the refund claims without the limitation period hindering the process. The appeals were allowed based on these considerations.
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