2001 (5) TMI 547 - Commissioner - Central Excise

Summary

Issues:
1. Rejection of rebate claim on the ground of time bar under Section 11B of the Central Excise Act, 1944.
2. Interpretation of the time limit for filing rebate claim under the Finance Act, 2000.
3. Applicability of Supreme Court judgment and Board's Circular on the time limit extension under Central Excise Law.

Analysis:
1. The appeal was filed against the rejection of a rebate claim amounting to Rs. 49,684 on the basis of being time-barred under Section 11B of the Central Excise Act, 1944. The consignment was cleared for export on 30-9-1999, exported on 7-10-1999, and the claim was filed on 15-5-2000, exceeding the 6-month period stipulated by Section 11B. The extended one-year period introduced by the Finance Act, 2000 was not considered applicable to the existing provisions before 12-5-2000.

2. The appellant argued that the time limit for filing the rebate claim had been extended to one year by the Finance Act, 2000, citing a Board's Circular clarifying the position. The Circular referred to a Supreme Court judgment in a similar case that supported the retrospective operation of the extended time limit under the Central Excise Law. The Ministry of Law advised bringing this judgment to the notice of field formations, leading to a modification in the Circular to issue show cause notices under the amended Section 11A in line with the Supreme Court's decision.

3. Upon reviewing the case records, the judge found merit in the appellant's submissions. The judge noted that the extension of the time limit under Section 11B should be interpreted in conjunction with the amendments made to Section 11A, as both sections had similar wording regarding the time limit extension. The judge held that the Supreme Court's decision and the Board's Circular applied equally to Section 11B. Therefore, the judge allowed the appeal by way of remand, setting aside the impugned order and remanding the case back to the Adjudicating Authority for further consideration on the rebate claim's merits in accordance with the law.