1999 (10) TMI 536 - AT - Central Excise

Tribunal emphasizes refund rights over procedural limitations, remands for fair review

The Tribunal ruled in favor of the appellants, emphasizing that procedural limitations should not negate the substantive right of refund, particularly ... Refund - Cash discount - Limitation Issues:Deductibility of cash discount from assessable value of goods for refund claim.Analysis:The issue involved in the judgment pertains to the deductibility of cash discount from the assessable value of goods for a refund claim. The appellant argued that the availability of the cash discount scheme was known to all buyers in advance, but the exact quantum of discount was determined only after the goods were sold and payments received within the stipulated period. The appellant indicated their intention to file refund claims at a later date when the exact quantum of cash discount was available. However, the orders-in-appeal held that the formal refund claims were time-barred under Section 11B of the Act as they were filed after the prescribed period. The appellant contended that a similar situation had been considered by the Tribunal previously, where the right for refund should not be negated due to procedural limitations. The Tribunal emphasized that the limitation under Section 11B should not undermine the substantive right of refund and should not render the refund claim a nullity due to the delayed sale of goods after payment of duty.The Tribunal noted that the appellant's case was similar to the previous cases considered, where the formal refund claims were filed after the availability of data on cash discounts given to buyers. The Tribunal held that the law laid down in previous final orders should be applied to the current case after verifying the facts. It was deemed necessary to remand the matter to the original authority for detailed examination of the facts. The Tribunal directed the original authority to apply the principles of law upheld in previous final orders and the appellant's case to the current facts. The appellants were to be given an opportunity to be heard before a final decision was made. Consequently, the appeals succeeded by way of remand for further proceedings.In conclusion, the judgment addressed the issue of deductibility of cash discount from the assessable value of goods for a refund claim. The Tribunal emphasized that procedural limitations should not undermine the substantive right of refund, especially in situations where the sale of goods occurs after the payment of duty. The case was remanded to the original authority for detailed examination and application of relevant legal principles to ensure a fair decision in light of the previous Tribunal rulings.