1990 (7) TMI 119

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....r (in part) made by the 1st respondent confirmed in appeal by Ext. P7 by 2nd respondent, and affirmed in a second appeal, by 3rd respondent Tribunal by Ext. P9. Petitioner claimed exemption from excise duty on 'trade discount'. Petitioner was found eligible to get exemption. However, for the period 1-3-1975 and 14-3-1976 refund was not granted, on the ground that the claim was barred by limitation....

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....ise, only in cases of a payment demanded and made erroneously, but under authority of law. When there is no authority for the demand, it is an illegal levy, and the concept of refund does not arise, submits counsel. Case of refund arises, where funding was under colour of authority. If collection or demand is not supported by any authority in law, then the question of refunding does not arise. Tha....

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..... Otherwise put, 'trade discount' given to the wholesaler or the agent as in this case, will not form part of the price, on which a duty of excise is exigible in the contemplation of the charging section viz. Section 4 of the Central Excises and Salt Act, 1944. That is the view taken by the Department itself in Ext. 12 (e) also. Levy made outside the authority of the charging section viz. Section ....