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2018 (11) TMI 215 - AT - Central ExciseRefund of the duty paid on aluminium products including aluminium dross - Area Based exemption availed - It was viewed by Revenue that since no duty was payable at the time of clearance of aluminium dross, no refund will also be payable in terms of area based exemption notification. Held that:- The intention of the Government in coming out with the area based exemption notification is to promote industrialization of the area. The Notification grants exemption to the specified goods manufactured within the designated area ; but such exemption has been operational through the refund mechanism. The CBEC Circular No.682/73/2002-CX dated 19.12.2002 has clarified that the refund paid under the area based exemption notification, is not the result of any excess payment of duty attracting Section 11B of the Act, but is a way of operation of the benefit of area based exemption. The appellant cannot be defaulted for making payment of duty on aluminium dross, especially since the appellant has been availing benefit of the same Notification for a long time and has been receiving periodical refunds - the appellant was not required to pay duty on aluminium dross in the light of the pronouncement of law by the Apex Court. But keeping in view the purpose of Notification, it can be inferred that once duty is paid, the refund cannot be denied to them. Appeal allowed - decided in favor of appellant.
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