TOROID INDIA PVT. LTD. Vs. C.C.E.

JUDGEMENT

(1.) THIS appeal is directed against the order -in -appeal dt.15.3.04 wherein the refund claim of the appellants have been rejected on the ground of time bar.

(2.) THE relevant facts arise for consideration are that the appellants are 100% EOU and are engaged in the manufacture of transformers. They procured duly paid Enameled Wire from their suppliers and consumed the same in the manufacture of transformers which they exported. The appellants preferred a refund claim of the duty paid on the Enameled Wire under Section 11B of the Central Excise Act, 44 on the ground that as 100% ECU, they are eligible to get the inputs without payment of duty, but having paid the duty as purchasers, they are eligible for such refund of excise duty paid on the inputs. A SCN was issued to them seeking to reject the refund claim on two grounds i.e. on the ground of time bar and for not following the procedure as laid down under Rules 156A and 173N of Central Excise Rules, 44 and notification No. 1/95. The appellants contested a SCN on various grounds. The adjudicating authority did not accept contentions of the appellants and rejected the refund claim filed by the appellants. On an appeal, the Commissioner(Appeals) has also rejected the refund claim on the ground that the said refund claim have been filed after the expiry of six months from the relevant date as laid down under Section 11AB. Hence this appeal.

(3.) LD . DR on the other hand submits that the appellants are working under EOU and they should have known the procedures to be followed for availing the benefits of non -payment of duty on the inputs. He further submits that the appellants' case is not at all covered under Section 11B for the simple reason that they choose to pay the duty on the inputs instead of waiting for getting the CT 3 certificate from the Deptt. He further submits that their case of claiming the refund of duty paid on the inputs could get covered under Sub -clause (e) to Explanation B to Section 11B and as a purchaser their refund claim is clearly time barred.