Order Date – 23 April 2024

Parties: Sepulchre Brothers Pvt. Ltd. Vs Commissioner of GST & Central Excise

Facts –

• The Appellant, Sepulchre Brothers Pvt. Ltd., import ‘Mould Release Agent’ from abroad and dilute the same by adding demineralized water. Though the Appellant felt that the activity does not amount to manufacture, they obtained Central Excise registration and pay central excise duty under protest.
• The department drew two test samples but the test result was not informed to the Appellant. Hence they filed a refund claim for the duty paid under protest but the was returned.

Issue –

• Whether the appellant is entitled to refund of central excise duty paid under protest?

Order –

• The Tribunal observed that the provisions of Section 11BB of the Act are attracted “automatically” for any refund sanctioned beyond a period of three months. The return of refund application is not a recognised mode of disposal of the refund claim as per the Central Excise Act, 1944.
• The delay of more than 10 years in finalizing the matter is shocking. No seriousness has been shown in the matter by the Divisional Authorities even though they were aware of the matter being pursued by the Appellant before higher Appellate forums. This being so the refund claim is restored back to the files of the learned Original Authority for proper disposal.
• The appeal is allowed.