2012 (5) TMI 113 - HC - Central Excise

Whether the Tribunal was justified in holding that limitation was not applicable in respect of refund of deposit made by the respondents - Held that in the present case, refund claim was filed by the assessee even before the appeal filed by the Revenue was disposed of by the First Appellate Authority. In these circumstances, the decision of the Tribunal in holding that the assessee was entitled to the refund of pre-deposit and rejecting the contention of the revenue that the claim of the assessee was time barred cannot be faulted - Decided in favor of the assessee

Summary

Issues:
Whether the Tribunal was justified in holding that limitation was not applicable in respect of refund of deposit made by the respondents.

Analysis:
The case involved a dispute regarding the refund claim filed by the assessee for an amount deposited voluntarily in response to a show cause notice. The Joint Commissioner, Central Excise, Mumbai dropped the proceedings, and the Revenue filed an appeal against this decision. During the pendency of the appeal, the assessee filed a refund claim for the deposited amount. The Assistant Commissioner rejected the refund application, citing it as beyond the period of limitation. The Commissioner of Central Excise (Appeals) later allowed the refund claim, leading to a further appeal by the Revenue, which was dismissed by the Tribunal.

The main issue raised by the Revenue was whether the refund claim, filed after the appeal by the Revenue was dismissed, was justified. The High Court noted that the assessee had filed the refund claim even before the appeal filed by the Revenue was disposed of by the First Appellate Authority. The Court emphasized that the amounts in question were deposited by the assessee pursuant to the show cause notice, and the refund claim was made in a timely manner. Therefore, the Tribunal's decision to allow the refund claim and reject the Revenue's contention of being time-barred was upheld.

In conclusion, the High Court ruled in favor of the assessee, stating that the decision of the Tribunal to grant the refund was appropriate given the circumstances of the case. The appeal was disposed of with no order as to costs.