Refund under duty exemption conditions cannot be denied for cheque-number mismatch where customer affidavits confirm actual refund.

Refund under Notification No. 64/2003-C.E. could not be denied merely because the cheque numbers in the refund receipts did not match those in the bank realisation certificate. The mismatch was explained as arising from cheques issued first by the manufacturer to the dealer and later by the dealer to the ultimate customers, and affidavits from the customers confirmed that the duty component had in fact been refunded. As the notification did not require production of a bank realisation certificate, the stated objection was not a valid basis to reject the refund claim. The Revenue's challenge to the refund therefore failed.

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Issues: Whether refund of duty under Notification No. 64/2003-C.E. could be denied merely because the cheque numbers in the refund receipts did not tally with the cheque numbers reflected in the bank realisation certificate, when affidavits of the ultimate customers stated that the duty amount had been refunded and the notification did not require production of a bank realisation certificate.

Analysis: The refund claims arose from cars registered as taxis under the notification. The objection raised by the Revenue was confined to mismatch of cheque numbers between the refund receipts and the bank realisation certificate. The explanation accepted was that the receipts reflected cheques issued by the manufacturer to the dealer, whereas the bank realisation certificate reflected cheques issued by the dealer to the customers. Affidavits from the customers who had taken the taxis confirmed receipt of the refund. The notification conditions were therefore treated as having been fulfilled, and the absence or mismatch of a bank realisation certificate was not regarded as a valid ground to deny refund.

Conclusion: The refund could not be denied on the stated ground, and the Revenue's challenge to the grant of refund failed.

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