2023 (5) TMI 1128 - AT - Central Excise

Refund claim - time limitation - rejection on the ground that the claim for refund of duty paid on vehicle registered as Taxi, was filed after expiry of 6 months from the date of payment of duty, in terms of condition no. 26 (b) of Notification No. 12/2012 - HELD THAT - The right to claim refund by the manufacturer of the motor vehicle (appellant) under Notification No.12/2012, arises on the material point or event, when the vehicle sold is registered with the Motor Vehicle Department (State Government) as an ambulance or taxi, and the manufacturer receives such information from the buyer of the vehicle along with proof. Thus, in the facts and circumstances, the limitation for refund for a manufacturer under Notification No.12/2012 under Sl.No.273, is six months from the date of registration of the vehicle as an ambulance or taxi. It is further found that the appellant - assessee have claimed the refund within a period of six months of the vehicles getting registered as taxi or ambulance. The impugned order to the extent, it has reduced refund for the amount of Rs.1,10,281/- set aside - The Adjudicating Authority is further directed to disburse the refund amount within a period 45 days from the date of receipt of this order along with interest as per rules - appeal allowed.

Summary

Issues involved:
The issues involved in the judgment are related to the refund claim filed by the Appellant for excise duty paid on motor vehicles registered as taxis, the rejection of part of the claim as time-barred, and the interpretation of the relevant provisions of Notification No. 12/2012.

Refund Claim and Time Limit:
The Appellant, engaged in the manufacture of motor vehicles, filed a refund claim amounting to Rs. 4,95,711 within six months of the vehicles being registered as taxis, in accordance with Notification No. 12/2012. However, a Show Cause Notice was issued proposing rejection of part of the claim as time-barred, beyond the stipulated 6-month period. The Assistant Commissioner confirmed the denial of refund as time-barred, citing a judgment of the Hon'ble Madras High Court.

Appellant's Grounds for Appeal:
The Appellant appealed the denial of refund before the Commissioner (Appeals) and subsequently before the Tribunal. The Appellant argued that the limitation for claiming the refund cannot start before the vehicles are registered as taxis, relying on the interpretation of similar provisions in other cases. The Appellant contended that the refund claim was filed within six months of the vehicles being registered, as evidenced by specific dates provided in the appeal.

Tribunal's Decision:
After considering the arguments, the Tribunal held that the right to claim a refund under Notification No. 12/2012 arises when the vehicle is registered as a taxi, and the limitation period for the refund is six months from the date of such registration. The Tribunal found that the Appellant had indeed filed the refund claim within the prescribed period. Consequently, the Tribunal allowed the appeal, set aside the order reducing the refund amount, and directed the Adjudicating Authority to disburse the refund amount within 45 days along with applicable interest.

Separate Judgement:
The judgment was delivered by Mr. Anil Choudhary, Member (Judicial) of the Appellate Tribunal CESTAT New Delhi.