2018 (5) TMI 864 - AT - Central Excise

Refund of Central Excise duty paid - Board Circular F No. 261/27/3/2006-CX8 dated 14.08.2008 - Held that - ICRISAT has to satisfy some conditions for refund Central Excise duty paid on petroleum products procured by them. It is not disputed in these appeals that ICRISAT had complied with the conditions in the refund claims filed for as per Board Circular dated 14.08.2008 - respondent herein is eligible for the refund of an amount paid towards Central Excise duty on the fuel consumed by them during the relevant period in question - Appeal dismissed - decided against Revenue.

Summary

Issues:
Refund of Central Excise duty on petroleum products consumed by an international organization.

Analysis:
The case involved three appeals against Orders-in-Appeal regarding the refund of Central Excise duty paid on petroleum products consumed by the respondent, an international organization. The respondent, recognized as an international organization, procured duty-paid petroleum products and filed refund claims. The Adjudicating Authority, following due process and a Board Circular, sanctioned all refunds, which the Revenue Authorities appealed. The First Appellate Authority upheld the Order-in-Original, allowing the refunds based on the organization's activities and the exemption under Notification No. 108/95-C.E for goods supplied to international organizations.

The main issue was whether the respondent, as an international organization, was entitled to exemption from Central Excise duty and refund for fuel used in research activities. The First Appellate Authority considered the organization's activities, the exemption under Notification No. 108/95-C.E, and the restrictions on the quantity of fuel eligible for refund. The Authority concluded that the respondent was entitled to exemption and refund, subject to restrictions on the quantity of fuel used for official vehicles.

The First Appellate Authority relied on Circular F. No.111/5/79-CX3 dated 19.10.1979 for granting relief to the respondent. Although the Authority did not mention a Board Circular dated 14.08.2008, the latter provided mechanisms for refund claims by the respondent. The Board Circular outlined conditions for refund claims, including submission of evidence and compliance with prescribed formats, which the respondent had fulfilled. Both lower authorities correctly concluded that the respondent was eligible for the refund of Central Excise duty on fuel consumed during the relevant period.

In conclusion, the Revenue's appeals were rejected as devoid of merits, affirming the correctness and legality of the impugned order. The concurrent findings of facts supported the respondent's eligibility for the refund, leading to the rejection of the appeals and disposal of the respondent's cross-objections.