2021 (3) TMI 846 - HC - Central Excise

Rejection of refund claim - time limitation u/s 11B of the Central Excise Act, 1944 - claim of the appellant regarding applicability of Entries No.12(a) and 12(c) of the Mega Exemption Notification No.25/2012-ST dated 20.06.2012 is ignored - HELD THAT - While dealing with the appeal, the second ground of challenge, had not been adverted to. This issue has also not been adjudicated by the Custom Excise and Service Appellate Tribunal - There is no adjudication on the issue that, in case, the exemption sought by the appellant under the Mega Exemption Scheme is allowed, the limitation for refund claim under Section 11B of the Act would not come into play. On the limited issue to examine the claim of the appellant seeking for benefit of the Mega Exemption Scheme, the matter is liable to be relegated to the Commissioner (Appeals), as the validity of the finding on the said issue in the order of rejection dated 13.3.2019 has to be examined by him - appeal allowed by way of remand.

Summary

Issues:
1. Applicability of Entries No.12(a) and 12(c) of Mega Exemption Notification No.25/2012-ST dated 20.06.2012.

Analysis:
The appeal in question challenged an order by the Customs, Excise, and Service Tax Appellate Tribunal, alleging that the Tribunal failed to consider the issue of whether Entries No.12(a) and 12(c) of the Mega Exemption Notification No.25/2012-ST applied. The main contention was that a refund application was filed claiming exemption under the Mega Exemption Scheme for a specific period. The appellant argued that the refund was wrongly denied by the Assistant Commissioner, and the Commissioner (Appeals) rejected it as time-barred under Section 11B of the Central Excise Act, 1944. The Tribunal did not address this crucial issue. The appellant emphasized that if entitled to the Mega Exemption Scheme, the limitation under Section 11-B would not apply. The revenue's counsel argued that the issue raised was beyond the scope of appeal under the Central Excise Act, 1944.

Upon review, the court found that the Commissioner (Appeals) did not address the appellant's grounds of challenge adequately, particularly regarding the exemption under the Mega Exemption Scheme. The Tribunal also failed to adjudicate on this crucial issue. The court noted that the exemption under the Mega Exemption Scheme could impact the limitation for the refund claim under Section 11B. Consequently, the matter was remanded to the Commissioner (Appeals) for a fresh decision in accordance with the law. The court set aside the previous orders by the Commissioner (Appeals) and the Tribunal, allowing the appeal and directing a reevaluation of the claim for exemption under the Mega Exemption Scheme.