Page 94 - ELT_1st July 2020_Vol 373_Part 1

4 EXCISE LAW TIMES [ Vol. 373

Strictures against Tribunal - Refund of excise duty paid under com-
pulsion of clearance - Denial of, on the ground of limitation - As per clarifica-
tion, Ad hoc exemption ought to be applicable for entire quantity of goods
supplied - Assessing Authority ignoring said fact, passed order denying re-
fund partially, invoking technical plea of limitation ignoring exemption under
Second Proviso of Section 11B of Central Excise Act, 1944 whereby no limita-
tion would apply when payment of duty treated as payment made ‘under pro-
test’ - It is this kind of negative attitude of Revenue Authorities which results
in legal battle between Government of India Public Sector Undertakings and
Revenue Department. [paras 10, 11]
Petition allowed
CASES CITED
Assistant Collector v. Bata Shoe Co. Pvt. Ltd. — 2004 (169) E.L.T. 3 (Cal.) — Relied on ........ [Paras 2, 11]
Ion Exchange v. Collector — 1991 (56) E.L.T. 454 (Tribunal) — Relied on ..................................... [Para 12]
DEPARTMENTAL CLARIFICATION CITED
C.B.E. & C. Letter, dated 26-9-1963 ....................................................................................................... [Para 11]
REPRESENTED BY : Ms. P. Jaya Lakshmi for Shri R. Karthikeyan, for the
Petitioner.
Ms. Hema Muralikrishnan, Senior Standing
Counsel, for the Respondent.
[Order per : Vineet Kothari, J.]. - This case presents a very piquant situa-
tion. The Assessee, which is Government of India undertaking has filed this Writ
petition under Article 226 of Constitution of India aggrieved by the order dated
22-9-2004 made in Final Order No. 800/2004 in Appeal No. E/1383/1997 of Cus-
toms, Central Excise & Service Tax Appellate Tribunal [2004 (177) E.L.T. 1128
(Tri.-Chennai)], whereby the Learned Tribunal while upholding the order passed
by the Adjudicating Authority upheld the rejection of refund of the Assessee for
Excise duty on the ground of limitation under Section 11B of the Central Excise
Act (in short ‘Act’).
2. The facts giving rise to filing of Writ Petition are as under :
(i) The Assessee Company under the orders from the Department of
Economic Affairs, Government of India was placed with an order to
supply 5250 Metric Tons of Stainless Steel Coin Blanks for 1 Re, 50
paise and 25 paise denominations. A part of the quantity viz., 2600
Metric Tons was procured from abroad and supplied by SAIL while
the remaining quantity was manufactured and supplied indige-
nously by the Assessee’s factory at Salem. The Department of Eco-
nomic Affairs, purchasers of these coin blanks requested the De-
partment of Revenue, Central Board of Excise and Customs
(C.B.E.C.) Government of India to exempt the Assessee from the
payment of Excise duty in respect of entire quantity of such Stain-
less Steel Coin Blanks supplied by the Assessee Company. At the
request of the Department of Economic Affairs, the Central Board of
Excise and Customs (C.B.E.C.) granted Ad hoc exemption vide its Ad
hoc Exemption Order No. 11/11/94 dated 21-9-1994 on the said en-
tire quantity of 2640 M.T. of Stainless Steel Coin Blanks supplied to
the Department of Economic Affairs. The said exemption notifica-
tion was clarified later on by C.B.E. & C. vide order dated 30-6-1995
stating that the ad hoc exemption order is applicable to the entire
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