2000 (7) TMI 689 - AT - Central Excise

Issues involved:
1. Rejection of refund claim for not following prescribed procedures under Rule 233B of Central Excise Rules, 1944.
2. Interpretation of whether the process of drilling of holes and cutting of angles and channels constitutes a process of manufacture.
3. Consideration of the sufficiency of a letter of protest for refund claims under Section 11B of the Central Excise Act, 1944.
4. Determination of whether the procedures under Rule 233B of Central Excise Rules are mandatory or procedural.
5. Remand of the matter to the original authority for de novo consideration due to rejection on the grounds of time bar.

Analysis:

1. The appeal stemmed from the rejection of a refund claim based on non-compliance with procedures outlined in Rule 233B of the Central Excise Rules, 1944. The rejection was upheld by the Commissioner (Appeals) due to the appellant's failure to follow the prescribed procedures. The central issue revolved around the acceptance of a letter of protest dated 23-10-82, with the appellant arguing that the duty paid for galvanising charges was not liable as certain processes were not considered manufacturing activities. The appellant cited previous tribunal orders and legal precedents to support their contention that the rejection solely on procedural grounds was unwarranted.

2. The appellant contended that the drilling of holes and cutting of angles and channels did not amount to a manufacturing process, which had been accepted in previous tribunal orders. They emphasized the sufficiency of the protest letter dated 23-10-82, citing the Bombay High Court's judgment in Roche Products Ltd. v. U.O.I. and the Supreme Court's ruling in Mafatlal Industries v. U.O.I. to support their argument that the letter of protest complied with the requirements of Rule 233B of the Central Excise Rules.

3. During the hearing, the appellant's representatives and the Departmental Representative presented their arguments, highlighting the key contention regarding the acceptance of the protest letter as meeting the criteria for refund claims under Section 11B of the Central Excise Act, 1944. The documents and impugned orders were examined to assess the validity of the appellant's claims and the rejection based on procedural non-compliance.

4. The Tribunal considered the legal position established in the Roche Products Ltd. case and subsequent judgments, emphasizing that a letter of protest lodged with the Assistant Collector was deemed sufficient compliance for refund purposes under Section 11B. The Tribunal reiterated that the procedural requirements under Rule 233B were not mandatory but rather procedural, affirming the appellant's plea that the protest letter protected the refund claim from 23-10-82 onwards. Consequently, the Tribunal set aside the impugned order and remanded the matter to the original authority for fresh consideration, as the rejection was primarily based on the claim being time-barred.

5. In conclusion, the Tribunal ordered the remand of the case to the original authority for de novo consideration, directing them to hear the appellants and issue a new order in accordance with the law. The decision was made in light of the legal precedents and the interpretation of the sufficiency of the protest letter for refund claims, emphasizing the non-mandatory nature of the procedural requirements under Rule 233B of the Central Excise Rules.

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