Excise – Cestat New Delhi: As the amount became refundable as a consequence of a judgement or order of Tribunal, the period of one year as prescribed by the Section 11B (1) is to be computed from the date of such judgment or order, hence refund allowed [Order attached]
Order Date – 09 May 2023
Parties: M/s Pine Laminates Pvt. Limited Vs Commissioner, Central Excise & CGST, Rajasthan
- The Appellant, M/s Pine Laminates Pvt. Limited, is engaged in manufacture of Decorative Laminate/ Sheet and had filed a refund claim on 09.01.2019 under section 11B of the Central Excise Act, 1944 which were became due by virtue of the decision of the Tribunal on 27.4.2018
- The department issued show cause notice dated 13.02.2019 as the refund claim appeared to be hit by time limit prescribed under section 11B of Central Excise Act, 1944 and was therefore liable to be rejected.
- Both the adjudicating authority and the Commissioner of (Appeals), confirmed the show cause notice, holding that the case do not fall under category of payment “under protest”.
- Whether the refund claim is hit by limitation prescribed under section 11B of Central Excise Act, 1944?
- The Tribunal observed that section 11B (1) prescribes the period of one year from the relevant date and the term “relevant date‟ is then defined under the Explanation as given above and the relevant clause (ec) specifically provides that in case the amount is refundable as a consequence of a judgement or order of an appellate Tribunal or any Court, it is the date of such judgement, decree, order or direction.
- In the present case, the amount became due by virtue of the decision of the Tribunal on 27.4.2018 and therefore if the period of one year is computed from the said date, the application for refund dated 09.01.2019 was within the limitation period of one year. On this count itself the refund claim ought to have been allowed.
- Hence, it cannot be ignored and the appellant is entitle to the benefit of the proviso to section 11B of the Central Excise Act, 1944, which specifically says that period of limitation of one year shall not apply where duty and interest is paid under protest.
- Thus the impugned orders are liable to be set aside and the appeal is accordingly allowed. Respondents are directed to process the refund applications and make the refund in accordance with law.