1997 (9) TMI 193 - AT - Central Excise

Summary

Issues:
1. Refund claim submitted by the respondent for excisable goods.
2. Rejection of refund claim by Assistant Collector on grounds of limitation and merits.
3. Disposal of refund claim by Collector (Appeals) partially on merits.
4. Challenge by the Department against the order of Collector (Appeals).
5. Interpretation of price agreement between parties for duty payment.
6. Barred time period for refund claim under Section 11B of the Central Excise Act, 1944.

Analysis:

1. The appeal pertains to a refund claim of Rs. 5,720.10 submitted by the respondent for excisable goods supplied between 23-8-1985 to 18-12-1985. The claim was initially rejected by the Assistant Collector on grounds of limitation and merits, leading to an appeal before the Collector (Appeals) who partially allowed the claim. The Department challenges this decision, raising issues related to the refund claim and its processing.

2. The Assistant Collector rejected the refund claim citing limitation and merit issues, contending that subsequent reduction in price of goods supplied earlier does not warrant a refund. Another refund claim by the same assessee was also rejected. The Collector (Appeals) partially allowed the claim, acknowledging the entitlement to refund but finding a part of the claim barred by limitation. The Department's appeal focuses on the order concerning the refund claim of Rs. 5,720.10.

3. The Tribunal clarified that the case does not involve a subsequent reduction in price but rather a situation where goods were supplied after the expiry of a contract, with bills prepared tentatively at the earlier contract price. The price was finalized between the parties after the supplies were made, indicating that duty is payable based on the agreed price. A previous case's judgment supported this interpretation, emphasizing the provisional nature of prices pending finalization.

4. The issue of the time bar under Section 11B of the Central Excise Act, 1944 was raised concerning the refund claim. While the Assistant Collector received the claim on 2-12-1986, the claim was initially presented on 12-5-1986. The Tribunal deemed the claim as received on the initial presentation date, thereby partially allowing the claim due to the limitation period. The Department's challenge against this decision was dismissed, affirming the partial allowance of the refund claim by the Collector (Appeals).

5. In conclusion, the Tribunal found no grounds to interfere with the Collector (Appeals) decision and dismissed the appeal. The judgment emphasized the importance of the finalized price agreement between parties for duty payment and clarified the application of limitation periods for refund claims under the Central Excise Act, 1944.