1997 (11) TMI 354 - AT - Central Excise

Summary

Issues Involved: Challenge to order rejecting refund claim u/s 11-B of Central Excises Act, 1944 due to time limitation.

In the present case, the appellant, engaged in the manufacture of gases, supplied to Government departments at DGS&D rates with price variation clause in contracts. The appellant paid duty on contract price at clearance, adjusting for price changes. Refund claims for specific periods were filed after six months from duty payment dates, which lower authorities deemed time-barred u/s 11-B. The appellant contested this decision.

A similar issue was addressed in previous cases, where it was held that price variation clauses in contracts make assessments provisional, thus not subject to limitation u/s 11-B. Citing a High Court decision, it was determined that provisionality extends to price lists and assessments, exempting claims from time limitation. Since the facts were akin to previous cases, the refund claims in this instance were also found not time-barred.

Consequently, the impugned orders rejecting the refund claims were set aside, and the claims were remanded to the adjudicating authority for a fresh decision on merits after granting the appellant a personal hearing. The appeal was allowed, while the cross objection supporting the impugned orders was dismissed.