1992 (12) TMI 160 - AT - Central Excise

Refund claims dismissed as time-barred for failure to meet statutory procedures.

TEXTILE INLAND AGENCIES (MFG.) Versus COLLR. OF C. EXCISE, CALCUTTA-I

The Tribunal upheld the rejection of the refund claims as time-barred, emphasizing adherence to statutory procedures for claiming refunds. The appellants' ... Refund - Limitation - Protest Issues Involved:1. Classification of goods under the appropriate Tariff Item.2. Entitlement to exemption from Excise duty.3. Validity and timing of refund claims.4. Effectiveness of letters of protest and classification lists as claims for refund.5. Applicability of statutory provisions under Rule 233B and Section 11B of the Central Excises and Salt Act, 1944.6. Precedents and judgments relevant to the case.Detailed Analysis:1. Classification of Goods Under the Appropriate Tariff ItemThe appellants, manufacturers of paper tubes, initially classified their product under Tariff Item 68 until 28-2-1982. Post the 1982-83 Budget, Tariff Item 17(4) was introduced, covering boxes, cartons, bags, and other packing containers of paper. The appellants argued that their product fell under this new item and was exempt from duty per Exemption Notification No. 62/82 dated 28-2-1982. However, the Department insisted that the paper cores were classifiable under Item 68, not under Item 17(4). This classification dispute was central to the case.2. Entitlement to Exemption from Excise DutyThe appellants claimed exemption from duty under Notification No. 66/82 dated 28-2-1982, as amended by Notification 151/83 dated 13-5-1983. They argued that manufacturers in other regions were clearing similar products without paying duty. The Assistant Collector eventually approved their classification list under Item 17(4) with complete exemption on 28-2-1986, which was not challenged by the Department, making it final.3. Validity and Timing of Refund ClaimsThe appellants filed refund claims for the duty paid in 1983-84 and 1984-85, which were rejected by the Assistant Collector as time-barred. The Collector (Appeals) partially allowed the appeal, holding that the letter dated 18-5-1985 was the crucial date for payment under protest, making the 1984-85 refund claim admissible. However, the Collector (Appeals) later rejected this, stating that a protest letter is effective only from the date it is delivered to the proper officer.4. Effectiveness of Letters of Protest and Classification Lists as Claims for RefundThe appellants argued that their letter dated 24-1-1983 indicated their disagreement with the Department's classification and should be considered a protest. They further contended that their letter dated 18-5-1985 constituted a constructive claim for refund. The Department argued that a protest letter could only cover future clearances and not past ones, per Rule 233B.5. Applicability of Statutory Provisions Under Rule 233B and Section 11B of the Central Excises and Salt Act, 1944The Department emphasized that a protest letter does not constitute a refund claim as per the Note under Rule 233B. The Tribunal noted that the statutory remedy of refund was only available within the parameters of Section 11B. Since the refund claims were filed beyond the permissible time limit and were not saved by a protest or provisional assessment, they were rightly rejected as time-barred.6. Precedents and Judgments Relevant to the CaseThe appellants cited several judgments to support their case, including:- Samrat International v. Collector of Central Excise, Hyderabad: Limitation counts from the date of assessment of RT-12 returns.- Dulichand Shreelal v. Collector of Central Excise: Duty paid under mistake of law.- India Cements Ltd. v. Collector of Central Excise: A letter raising objections against levy was treated as a protest.- J.B. Advani & Co. Pvt. Ltd. v. Collector of Central Excise: A revised classification list was treated as a refund claim.- Collector of Central Excise v. Niranjan Battery Corporation: Classification list claiming exemption treated as an application for necessary relief.The Tribunal distinguished these cases, noting that the appellants' situation involved specific statutory provisions that were not applicable in the cited cases. The Tribunal concluded that the appellants' failure to follow the prescribed procedure for protest and refund claims under Rule 233B and Section 11B barred their claims.Conclusion:The Tribunal upheld the rejection of the refund claims as time-barred, emphasizing the importance of adhering to statutory procedures for claiming refunds. The appellants' letters and classification lists, while indicating disagreement with the Department's classification, did not meet the requirements to constitute valid protest or refund claims under the applicable rules. The appeals were dismissed, and the impugned order was upheld.