1990 (12) TMI 265 - AT - Central Excise

Summary

Issues:
1. Entitlement to refund of duty paid during pendency of approval of revised classification list.
2. Determination of assessable value for exemption notification purposes.

Analysis:

Issue 1:
The appeal in question arose from an order by the Appellate Collector regarding the respondents' classification list for Carbondioxide and their claim for duty exemption under Notification No. 71/78. The respondents filed a revised classification list seeking exemption with retrospective effect from 1st April, 1978. The duty was paid provisionally pending approval of the revised list. The dispute centered on whether the respondents were entitled to a refund of duty paid between 1st April, 1978, and 6th October, 1978, during the pendency of the approval process for the revised classification list.

The Tribunal noted that the approval of the revised classification list related back to the date of filing, as per precedent. The application for exemption in the classification list was deemed to include a claim for refund, obviating the need for a separate refund application. Therefore, the Tribunal held that the respondents were entitled to a refund of duty paid during the said period. The decision was supported by legal precedents and the interpretation of relevant laws.

Issue 2:
Regarding the determination of the assessable value for the purpose of the exemption notification, the Tribunal agreed with the view that the value should be based on the factory gate price, if available, in line with Section 4 of the Act. The Tribunal directed the Assistant Collector to redetermine the assessable value accordingly and grant the refund in accordance with the observations made.

In a separate order by another Member of the Tribunal, it was reiterated that the respondents would be entitled to a refund for the period from 22nd June, 1978, to 6th October, 1978, provided they had lodged a refund claim for that period. The approval of the revised classification list allowed the benefit of the exemption notification, subject to a valid refund claim being filed. The determination of the value for the exemption notification was also endorsed in line with the previous order by the Member (Judicial).

In conclusion, the appeal was dismissed, affirming the entitlement of the respondents to a refund of duty paid during the specified period and the redetermination of the assessable value for exemption purposes.