2021 (4) TMI 846 - AT - Central Excise

Refund of Excise Duty paid - amount paid under protest - demand barred by limitation under section11B of Central Excise Act, 1944 - HELD THAT - Considering the fact that the appellant has reversed immediately the amount to buy peace under protest, in that circumstance, the time limit prescribed under section 11B is not applicable to the facts of this case and as per proviso (2) to section 11B of the Act, the time limit is not applicable as the duty has been paid by the appellant under protest. The appellant is entitled to refund of the amount as no time limit is applicable to the facts of the case - Appeal allowed - decided in favor of appellant.

Summary

Issues:
Refund claim barred by limitation under section 11B of Central Excise Act, 1944.

Analysis:
The appellant appealed against the impugned order that rejected their refund claim as barred by limitation under section 11B of the Central Excise Act, 1944. An investigation was conducted against the appellant for the period August 2019, leading to a demand notice issued in October 2014 for duty payment, interest, and penalty. The appellant reversed the amount immediately under protest to buy peace. The show cause notice was adjudicated, and the appellant's challenge traveled up to the Tribunal, which set aside the adjudication order. Subsequently, in September 2017, the appellant filed a refund claim in January 2019, which was rejected based on section 11B. The appellant contended that since the duty was paid under protest, the time limit under proviso (2) to section 11B should not apply to their case, making them eligible for a refund.

The appellant's counsel argued that the payment made under protest to buy peace should exempt them from the time limit prescribed by section 11B of the Act, citing proviso (2) to support their claim. On the contrary, the respondent's representative reiterated the lower authorities' findings.

After hearing both parties, the Member (Judicial) noted that the appellant had promptly reversed the amount under protest to buy peace, making the time limit under section 11B inapplicable to the case. Relying on proviso (2) to section 11B, which states that if duty is paid under protest, the time limit does not apply, the Member concluded that the appellant was entitled to a refund as no time limit was applicable in this scenario. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief.

In conclusion, the Tribunal determined that the appellant's refund claim was valid, as the payment made under protest exempted them from the time limit under section 11B of the Central Excise Act, 1944. The judgment emphasized the importance of considering the specific circumstances of each case when interpreting statutory provisions related to refund claims and duty payments made under protest.