2012 (12) TMI 465 - AT - Central Excise

Refund 100% EOU - manufacture of excisable goods falling under heading 5802 for export - assessee procuring indigenously manufactured goods free of excise duty under exemption Notification No. 22/2003-C.E. and its predecessor notifications - appellant procured free of basic excise duty and AED under Notification - refund claims were filed on the ground that the Notification No. 22/2003-C.E. and its predecessor Notifications also exempted the AED levied on HSD under Section 133 of the Finance Act, 1999 Held that - There is no scope to cover AED leviable on HSD under Section 133 of the Finance Act, 1999 under Notification No. 22/2003-C.E. and its predecessor notifications, when the AED leviable under Finance Act, 1999 is not mentioned in these notifications - refund claims rejected

Summary

Issues:
Refund claims admissibility under exemption Notification No. 22/2003-C.E. for Additional Excise Duty (AED) on High-Speed Diesel (HSD).

Detailed Analysis:
1. The appellant, a 100% EOU, procured HSD free of basic excise duty and AED under Notification No. 22/2003-C.E. and predecessors. A dispute arose regarding the payment of AED on HSD from April 1999 to March 2006.
2. The appellant filed refund claims totaling Rs. 1,12,28,400 for HSD received during different periods, contending that AED on HSD was also exempted under the said notifications.
3. The Assistant Commissioner rejected the refund claims, citing inadmissibility and time-barred issues, which were upheld by the Commissioner (Appeals), leading to the filing of three appeals.
4. The appellant argued that AED on HSD falls under the exemption of duty of excise as per the notifications, supported by a Board's Circular.
5. The Respondent defended the order, referencing a Supreme Court judgment and a Tribunal case, asserting that AED on HSD is not covered by the exemption notifications.
6. The Tribunal analyzed the exemption notifications, emphasizing the specific levies exempted and concluded that AED on HSD under the Finance Act, 1999 was not included in the exemptions.
7. Drawing parallels with a Supreme Court case, the Tribunal clarified that the language of the notifications did not extend to cover AED on HSD, as it was not explicitly mentioned.
8. The Tribunal dismissed the appeals, affirming the rejection of refund claims, as AED on HSD was not within the scope of exemption under Notification No. 22/2003-C.E. and predecessors.

This detailed analysis outlines the legal dispute over the admissibility of refund claims for AED on HSD under specific exemption notifications, culminating in the Tribunal's decision to dismiss the appeals based on the scope of the exemptions provided in the notifications.