2014 (9) TMI 632 - AT - Central Excise

Tribunal decision emphasizes strict procedures for duty refund claims under self-assessment rules

CCE., Ahmedabad Versus M/s Parixit Industries Ltd.

The Tribunal allowed the appeal filed by the Revenue, setting aside the Order-in-Appeal and restoring the Order-in-Original. The decision emphasized that ... Denial of refund claim - exemption under Notifiction No. 6/2002-CE dtd 1.3.2002 - Duty paid at the time of clearance under self-assessment - Held that:- assessments were never made provisional and the original duty assessment was not varied. Cestat Mumbai, in a difference of opinion matter, has also held in the case of M/s Nicholas Piramal (I) Ltd vs Commissioner of Customs, Airport, Mumbai [2014 (9) TMI 621 - CESTAT MUMBAI (LB)] that exemption not claimed at the time of assessment cannot be claimed by way of a refund claim without challenging the original assessment - Decided in favour of Revenue. Issues involved:1. Interpretation of Notification No. 6/2002-CE for exemption claim.2. Eligibility of refund claim under self-assessment without varying original assessment.Analysis:1. The appeal was filed by the Revenue against the Order-in-Appeal (OIA) passed by the Commissioner (Appeals) regarding a refund claim under Notification No. 6/2002-CE. The appellant claimed exemption based on a certificate issued by the District Collector for supply to Kerala Water Authority. The Revenue argued that the goods were not directly cleared to the authority, and duty was paid under self-assessment without producing certificates at the time of clearance. The Revenue cited case laws emphasizing strict adherence to exemption conditions and the inadmissibility of refund claims without contesting the original assessment.2. The appellant relied on a judgment to support the claim that a refund can be sought even without producing the required certificate at the time of clearance. The respondent presented various case laws to support their contention that a refund claim is admissible within the prescribed time, despite not producing the necessary certificate during clearance. Both parties presented their arguments, and the case records were examined.3. The Tribunal observed that the issue had been extensively addressed in previous decisions, including the Apex court rulings. Referring to the case of M/s Maharashtra Cylinders Pvt Ltd vs. CESTAT, Mumbai, it was noted that unless the self-assessment is varied or altered, refunding duty paid under self-assessment is not permissible. The Tribunal highlighted that the original duty assessment was not altered, and exemption not claimed at the time of assessment cannot be sought through a refund claim without challenging the original assessment.4. Considering the settled legal position, the Tribunal allowed the appeal filed by the Revenue, setting aside the OIA and restoring the Order-in-Original (OIO) passed by the Adjudicating Authority. The judgment was pronounced on 18.9.2014, emphasizing the importance of following the prescribed procedures for exemption claims and refund requests under self-assessment.