1997 (2) TMI 367 - AT - Central Excise

Summary

Issues: Classification of Ferro Alloys under Central Excise Tariff, Exemption under Notification No. 209/83-C.E., Refund claim, Non-approval of classification list, Payment of duty under protest, Procedural lapse under Rule 233B of Central Excise Rules.

Classification of Ferro Alloys under Central Excise Tariff:
The case involved the classification of Ferro Alloys under the Central Excise Tariff. Initially classified under Item No. 68, they were reclassified under Item 25 with effect from 1-8-1983. M/s. Mehra Ferro Alloys claimed exemption under Notification No. 209/83-C.E. for Ferro Alloys manufactured without power using specific processes.

Exemption under Notification No. 209/83-C.E. and Refund Claim:
M/s. Mehra Ferro Alloys started paying duty from 13-8-1983 due to the non-approval of their classification list. Despite a refund claim filed for the period 13-1-1983 to 6-10-1985, the Revenue challenged the refund granted by the Asstt. Collector, which was upheld by the Collector of Central Excise (Appeals).

Non-approval of Classification List and Payment of Duty under Protest:
The classification list filed by M/s. Mehra Ferro Alloys was not approved, leading to a show cause notice in 1983. The Apex Court precedent highlighted that in cases where the classification list is not approved, clearances must be considered provisional, even without the execution of a bond.

Procedural Lapse under Rule 233B of Central Excise Rules:
The Tribunal emphasized that the procedural lapse under Rule 233B of the Central Excise Rules is directory, not mandatory. Citing various legal precedents, including Supreme Court and Tribunal decisions, it was held that as long as there is a protest lodged, the procedural lapse should not be a basis for denying a refund claim. The Tribunal noted that in this case, the intention to pay duty under protest was evident, and the refund had already been paid to the respondents.

Judgment:
After considering all relevant facts and legal precedents, the Tribunal found no grounds to interfere with the Collector of Central Excise (Appeals)' decision to grant the refund. Consequently, the appeal by the Revenue was rejected, affirming the refund granted to M/s. Mehra Ferro Alloys.