ESCORTS LTD Vs. CCE

JUDGEMENT

(1.) APPELLANT having paid duty on the excisable product filed two refund claims in respect of two different periods on the ground that duty had been paid on the element of interest on receivables. The Assistant Collector rejected both the refund claims on the ground that the element had not been declared in the price lists. Refund claim for the period January, 1987 to June, 1987 was rejected also on the ground of bar of limitation. Rejection of the refund claims was challenged before the Collector (Appeals) who dismissed the appeal. Hence the present appeal.

(2.) IF the refund claim is based entirely in regard to interest on receivables, it is admissible subject to Section 11B(2) of the Central Excise Act, 1944.

(3.) SHRI K. Srivastava, SDR pointed out that in the Memo, of Appeal filed before the Collector (Appeals), the appellant admitted that refund claim related to interest on stocks as well as interest on receivables. Interest on stocks is not deductible. Therefore, factual verification would be necessary.