1999 (2) TMI 206

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.... as they were not having any small scale industries registration certificate. They got themselves registered with the Directorate of Industries with effect from 19-8-1986. As the appellants were not aware of the correct procedure and their eligibility for the concessional rate in terms of small scale exemption Notification No. 175/86, dated 1-3-1986, they entered into correspondence with the Superintendent and the Assistant Collector for clarification on the point as to whethere the clearances effected prior to 18-8-1986 have to be taken into account for computation of total clearances in terms of Notification 175/86. No reply was received by them. Subsequently, they filed a refund claim for Rs. 1,61,309.90 on 1-4-1986 for the clearances ef....

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.... Act but nothing happened to the same. A third notice was finally issued on 28-8-1990 invoking extended period of five years for recovery of the erroneous refund of Rs. 1,61,309.90 by alleging that the refund by the Assistant Collector vide his order dated 10-3-1988 was out of collusion. 3. It was on this ground that the Collector passed the impugned order holding that there was collusion between the appellants and the Assistant Collector in handling of the above issue and as such the longer period was available to the department for recovery of the said refund. The above allegation was based on the ground that the Assistant Collector in his communication prior to adjudication has given the correct interpretation of the Notification N....