2020 (11) TMI 723 - AT - Central Excise

Refund claim - rejection of refund claim as being time-barred by computing the period upto the date of second presentation before the Tiruchirapalli Commissionerate - HELD THAT - The refund claim has been first presented on 31-3-2010 the refund sanctioning authority has erred in computing the time-limit reckoning 16-8-2011 as the date of filing refund claim. The time-limit has to be computed from the date of clearance of the goods to the date of first presentation of the claim. The refund would be then well within time. The rejection of refund claim on the ground of being time-barred is set aside. The refund sanctioning authority is directed to look into the merits of the claim. The matter is remanded back to the refund sanctioning authority who is directed to consider the claim on merits - Appeal allowed by way of remand.

Summary

Issues:
Refund rejection on grounds of being time-barred.

Analysis:
The appeal before the Appellate Tribunal CESTAT Chennai dealt with the issue of a refund claim rejection on the basis of being time-barred. The appellant, an LTU registered in Delhi, initially filed a consolidated refund claim before the New Delhi Commissionerate on 31-3-2010. Subsequently, realizing the claim should have been filed before the concerned Commissionerate, the appellant refiled it before the Tiruchirapalli Commissionerate on 16-8-2011. The refund was rejected as time-barred by the refund sanctioning authority, considering the period up to the date of the second presentation before the Tiruchirapalli Commissionerate. However, the appellant argued that if the period was computed from the date of goods clearance to the date of the first presentation, the claim would be within the time limit. Reference was made to a Tribunal decision in a similar case.

The Learned Advocate for the appellant contended that the refund claim should have been considered from the date of goods clearance to the date of the first presentation, which would render the claim within the time limit. The Tribunal concurred, stating that the refund sanctioning authority had erred in computing the time-limit from the wrong date, and the rejection on the grounds of being time-barred was set aside. The Tribunal directed the refund sanctioning authority to review the claim on its merits, remanding the matter back for reconsideration. Consequently, the impugned order was overturned, and the appeal was sent for a fresh assessment on the merits.

This judgment highlights the importance of correctly calculating the time limit for refund claims and emphasizes the need for authorities to consider claims on their substantive merits rather than dismissing them solely on procedural grounds. The decision serves as a reminder for refund sanctioning authorities to ensure accurate assessment and fair consideration of refund claims in accordance with the applicable laws and regulations.