NANAVATI CHEMICAL INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner is manufacturing Sodium Silicate. The petitioner claimed refund of excise duty of Rs. 24,940.22 ps. (Rs. 24,760.41 ps. as basic duty plus Rs. 179.81 ps. special duty). It was contended by the petitioner that the base period for fixing clearance was year 1975 -76 and the petitioner started manufacturing from May 1977. Therefore the clearance during 1976 -77 was nil and hence for the clearance made during May 14, 1977 to March 31, 1978, petitioner claimed refund of the amount of extra duty paid on the ground that the petitioner was entitled to claim the benefits of exemption Notification No. 198/76, dated June 16, 1976.

(2.) THE petitioner preferred the claim for refund on April 2, 1979. The said claim has been rejected by the Assistant Collector concerned as per order dated July 26, 1979. The petitioner has challenged the legality and validity of the aforesaid order passed by the Assistant Collector and has claimed that the respondents be directed to pay the amount of extra duty.

(3.) THE learned counsel for the petitioner has submitted that the case of the petitioner has not been considered on merits by the Assistant Collector. Therefore he has submitted that this Court may examine the claim of refund on merits. As the Assistant Collector rejected the application on the ground of limitation he was not required to consider the application on merits. Even so, we are examining the merits. We have been taken through the Notification No. 198/76, dated June 16, 1976. There is nothing on record to show that the petitioner has complied with the conditions laid down in the notification and that the petitioner was entitled to claim exemption benefits flowing from the notification. Therefore, it cannot be said that even on the merits the petitioner has a good case and the case of the petitioner has been wrongly rejected.