Refund under excise exemption for international organisations applies to research fuel, while vehicle-only limits remain confined to official vehicles.

An international organisation notified under the United Nations (Privileges and Immunities) Act, 1947 may obtain refund of Central Excise duty under Notification No. 108/95-C.E. where exemption could not be availed at the procurement stage, provided the refund mechanism and Section 11B conditions are satisfied, including that the duty burden was not passed on. The 350 litres per month per vehicle restriction applies only to fuel used in official vehicles and does not extend to fuel used for research and allied activities, for which refund remains available without that cap.

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Issues: Whether an international organisation notified under the United Nations (Privileges and Immunities) Act, 1947 was entitled to refund of Central Excise duty paid on HSD/petroleum products under Notification No. 108/95-C.E., and whether any quantity restriction applied to fuel used for research activities and official vehicles.

Analysis: The respondent was accepted as an international organisation entitled to the exemption under Notification No. 108/95-C.E. The Board's circular on refund mechanism was treated as applicable because the exemption could not be extended at the procurement stage where the goods were not supplied directly in the manner contemplated by the notification. The refund claim was also examined in light of Section 11B of the Central Excise Act, 1944 and the requirement that the duty incidence be borne by the claimant and not passed on. On the facts, the respondent had complied with the conditions for refund. The restriction of 350 litres per month per vehicle was held applicable only to fuel used in official vehicles, while fuel used for research and allied activities was held refundable without that vehicle-based cap. The per-litre refund restriction relied on by the Revenue was held inapplicable to the respondent as an international organisation.

Conclusion: The respondent was held entitled to refund of Central Excise duty on fuel used for research and allied activities, and the vehicle-based limitation applied only to official vehicles. The Revenue's appeals were rejected.

Ratio Decidendi: Where exemption for an international organisation cannot be availed at the stage of clearance, refund may be granted under the prescribed mechanism if the statutory conditions under Section 11B are satisfied, and any quantity restriction confined to official vehicles does not extend to fuel used for other organisational activities.

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