SURYA ROSHNI LTD. Vs. CCE

JUDGEMENT

(1.) THIS appeal is filed by the appellant against the impugned order dated 5.8.2003 wherein the refund claim of Rs. 346,633/ - was rejected.

(2.) IN this case, the appellants are engaged in the manufacture of M.S. pipes and tubes and cold rolled strips classifiable under Chapter 73 and 72 of the Central Excise Tariff, 1985. The appellants paid 8% on the value of the exempted final products under Rule 57CC and Rule 57AD of the Central Excise Rules, 1944. Subsequently, the audit party raised objection that the appellant recovered the said amount from their customers and therefore, the appellant is liable to reverse the said amount as collected from customers. At the instance of the audit party, the appellant again reversed the amount of 8% on the value of the exempted goods. Subsequently, the appellant detected mistake and filed refund claim of Rs. 3,46,633/ - as paid twice. The lower authorities rejected the refund claim on the ground that the appellant has recovered the amount calculated at the rate of 8% in the name of duty of excise from their buyers even when the finished goods cleared by the appellant were exempted from payment of duty. It has been observed that it is not relevant whether the appellant was infact liable to pay this amount of 8% or not, as fact remains that this amount has been recovered by the appellant from the buyers in the name of duty of excise and, therefore, the said amount is recoverable from the appellant under Section 11D of the Central Excise Act, 1944. It has also been observed by the lower authorities that the appellant paid subsequently the amount in view of Section 11D of the Central Excise Act, 1944. Hence, the refund claim was rejected.

(3.) HEARD both sides and perused the record.