2013 (12) TMI 168 - AT - Central Excise

Interpretation of 'relevant date' under Central Excise Act: Communication vs. Final Order Date

The case centered on the interpretation of the 'relevant date' under Section 11B of the Central Excise Act for filing a refund claim. The dispute arose ... Refund claim u/s 11B of the Central Excise Act – Claim time barred - Held that:- The refund claim filed by the respondent on 28/10/2010 is beyond one year from the date of pronouncement of the Final Order of the Tribunal - The statute does not provide for condonation of any delay, however marginal it may be - The law made by the Parliament is supreme and has to be given full effect to – Following Dena Snuff (P) Ltd. Vs. CCE, Chandigarh [2003 (9) TMI 84 - SUPREME COURT OF INDIA] - The protest is irrelevant inasmuch as the refund claim filed by the respondent is consequential to a Final Order passed by the Tribunal and there is a specific definition of ‘relevant date’ in factual situation wherein the period of limitation should run from the date of such Final Order - This mandate of law is irresistible and no amount of protest can help the claimant to get over it – Order set aside – Decided in favour of Revenue. Issues:1. Interpretation of relevant date under Section 11B of the Central Excise Act for filing a refund claim.2. Applicability of the limitation period for filing a refund claim.3. Effect of payment under protest on the limitation period for refund claims.4. Judicial interpretation of the relevant date in the context of appellate tribunal orders.Issue 1: Interpretation of relevant date under Section 11B of the Central Excise Act for filing a refund claim:The case involved a dispute regarding the interpretation of the 'relevant date' under Section 11B of the Central Excise Act for filing a refund claim. The respondent contended that the relevant date for their refund claim was the date of receipt of the Final Order of the appellate Tribunal. However, the original authority considered the date of the Final Order as the relevant date, leading to the rejection of the refund claim. The Commissioner(Appeals) held that the date of communication of the Tribunal's Final Order was the relevant date, allowing the refund claim within the prescribed period of one year from the date of the Final Order. The dispute revolved around the correct interpretation of the relevant date under the statute.Issue 2: Applicability of the limitation period for filing a refund claim:The key contention in the case was the applicability of the limitation period for filing a refund claim under Section 11B of the Central Excise Act. The respondent filed a refund claim based on a Final Order of the appellate Tribunal, seeking a refund of duty paid under protest. The statute required such claims to be filed within one year from the relevant date. The dispute arose as the refund claim was filed beyond one year from the date of the Final Order. The appellate authority's decision to allow the refund claim was challenged by the Department, citing the statutory limitation period and seeking the restoration of the original rejection order.Issue 3: Effect of payment under protest on the limitation period for refund claims:A significant aspect of the case was the effect of payment under protest on the limitation period for refund claims. The respondent argued that since the duty was paid under protest, the time-bar provisions of Section 11B were not applicable. They referred to the second proviso to sub-section (1) of Section 11B, which exempts cases where duty and interest are paid under protest from the one-year limitation period. The respondent maintained that the protest was never vacated and, even if considered ineffective, the refund claim should not be rejected as time-barred based on judicial precedents and Tribunal decisions regarding claims for duties paid under protest.Issue 4: Judicial interpretation of the relevant date in the context of appellate tribunal orders:The case also delved into the judicial interpretation of the relevant date in the context of appellate tribunal orders. The Tribunal analyzed the definition of the 'relevant date' under Section 11B, emphasizing that in cases where duty becomes refundable due to an order of the appellate Tribunal, the date of such order is the relevant date. The Tribunal aligned its decision with the law laid down by the Parliament and the apex court's rulings, emphasizing the importance of adhering to the statutory provisions and the specific definition of the relevant date in refund claims based on tribunal orders. The appellate authority's misinterpretation of the apex court's judgment and ambiguity in applying the law were highlighted, leading to the setting aside of the impugned order and the allowance of the appeal.This detailed analysis of the judgment addresses the various legal issues involved, including the interpretation of the relevant date, the limitation period for refund claims, the impact of payment under protest, and the judicial interpretation of relevant dates in the context of appellate tribunal orders.