2004 (3) TMI 674 - AT - Central Excise

Tribunal Allows Refund Claim Despite Time Limit, Applies General Clauses Act

The Tribunal found that the refund claim was not time-barred as the appellants had filed it within the six-month period allowed, considering the holiday ... Refund - Limitation Issues:- Rejection of refund claim as time-barredAnalysis:The appeal in this case revolves around the rejection of a refund claim as time-barred. The appellants had cleared certain quantities of their final product in 1998, but the goods were found defective by the customer and returned to the factory on 23-2-1999. The appellants then re-processed and cleared the goods in December 1999 and January 2000. A refund claim was filed on 23-8-1999 under Rule 173L of the Central Excise Rules. The original authority rejected the claim as premature due to no second-time payment of duty, while the first appellate authority rejected it as time-barred under Section 11B of the Central Excise Act.Upon hearing both sides, the Tribunal found that the refund claim was not time-barred. The appellants had the full six-month period from 23-2-1999 to file the claim, which ended on 22-8-1999, a Sunday. Since this day was a holiday for the department, the claim was filed on the next working day. The Tribunal applied the General Clauses Act, 1897, which deems a claim filed on the next day after a holiday as filed within time. This interpretation was supported by a previous Tribunal decision and legal principles. The Tribunal rejected the application of the Limitation Act to quasi-judicial proceedings, as established by the Apex Court.Consequently, the Tribunal held that there was no delay in filing the refund claim and directed the proper officer to refund the duty amount to the assessee. The order of the Commissioner (Appeals) rejecting the claim as time-barred was set aside, and the appeal was allowed in favor of the appellants.