2019 (11) TMI 488 - AT - Central Excise

Tribunal Remands Case for Refund Claim Verification & Settlement

Dalmia Cement (Bharat) Ltd Versus The Commissioner of Customs Central Excise & Service Tax Tirupati Commissionerate

Dalmia Cement (Bharat) Ltd Versus The Commissioner of Customs Central Excise & Service Tax Tirupati Commissionerate - TMI Issues:1. Time limitation for refund application under Section 11B.2. Rejection of refund application based on deficiencies in documents and calculations.Issue 1: Time limitation for refund application under Section 11BThe appellant filed a refund claim with the Large Tax Payers unit (LTU) New Delhi, realizing an excess payment of excise duty. The LTU communicated that the refund application was not in proper form, leading to subsequent correspondence between the appellant and the LTU. The appellant later opted out of the LTU scheme and obtained individual registrations for their factories. The Assistant Commissioner rejected the refund application as time-barred, among other grounds. The appellant contended that the original filing date before LTU should be considered for limitation under Section 11B, relying on legal precedents. The Tribunal agreed, citing past judgments, and held that the original application date should be considered for limitation purposes. The appeal was allowed by remanding the case to the original authority for verification and settlement of the refund claim based on the original application date.Issue 2: Rejection of refund application based on deficiencies in documents and calculationsThe Assistant Commissioner rejected the refund application citing deficiencies in accuracy of calculations, lack of substantiation by relevant invoices, and submission of irrelevant documents. The appellant argued that they could provide necessary invoices and explanations if given an opportunity. The Tribunal acknowledged the voluminous nature of the documents submitted and agreed that the original authority should be allowed to verify all documents and settle the claim as per the law. The appeal was disposed of by way of remand, directing the original authority to examine and settle the claim after verifying the documents as necessary, providing the appellant with an opportunity to explain the documents and calculations.In conclusion, the Tribunal addressed the issues of time limitation for refund application and rejection based on deficiencies in documents and calculations. The judgment clarified that the original filing date before LTU should be considered for limitation under Section 11B and directed the original authority to verify all documents and settle the claim accordingly. The appellant was granted an opportunity to provide necessary invoices and explanations for a fair assessment of the refund claim.