1997 (3) TMI 278 - AT - Central Excise

Summary

Issues:
1. Timeliness of the refund claim submission.
2. Verification of whether the burden of duty has been passed on to customers.

Analysis:

Issue 1: Timeliness of the refund claim submission
The Appellant submitted a refund claim for excess duty paid in the old proforma on 13-9-1993, against goods cleared on 29-5-1993. The Assistant Collector pointed out deficiencies in the claim on 11-2-1994, including the use of the old proforma. The Appellant resubmitted the claim in the revised proforma on 25-2-1994. The Commissioner held that the resubmission was beyond the six-month limitation and rejected the claim. The Appellant argued that the claim was filed within four months of clearance and payment of duty, and if guided earlier, would have used the correct proforma within the time limit. The Tribunal agreed, holding that the Appellant filed the claim within time, considering the circumstances. The Tribunal also noted that the credit note issued by the Appellant to customers indicated that the burden of duty had not been passed on, entitling the Appellant to a refund of Rs. 37,050.

Issue 2: Verification of whether the burden of duty has been passed on to customers
The Commissioner raised concerns about the Assistant Collector not verifying if the burden of duty had been passed on to customers. The Appellant argued that the credit note provided evidence that the burden had not been transferred. The Tribunal found that the credit note supported the Appellant's claim that the duty burden had not been passed on, as the customers were issued a credit note for the differential duty paid in excess. The Tribunal held that the Appellant was entitled to the refund based on this evidence and allowed the appeal, setting aside the previous order.

This judgment highlights the importance of timely submission of refund claims and the significance of verifying whether the burden of duty has been passed on to customers in excise matters. The Tribunal emphasized the need for proper guidance to taxpayers and considered the authenticity of contemporaneous documents, such as credit notes, in determining the passing on of duty burden.