9911796707
TMI Blog1985 (7) TMI 367X X X X Extracts X X X X X X X X Extracts X X X X ..... indicated in the order as well as the grounds of appeal are that the appellants are manufacturers of rough die cast rotor cages, which are used for making rotors for electric motors. The appellants asserted that since these rotor cages manufactured by them could not be used directly in the rotor and were semi-finished articles, they were not liable to pay excise duty under Tariff Item 30(4) of the Central Excise Tariff (CET for short). However, the Department does not seem to have agreed with their contention and they started paying duty as demanded, under protest, with effect from 1972. 3. The dispute was eventually settled by an order passed in March 1975 by the then Collector of Central Excise, Bombay upholding the contention of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d could be verified with reference to the accounts furnished by them to ascertain if any proforma credit was claimed and adjusted by such manufacturers. Excepting this modification in the Assistant Collector's order, the appeal was dismissed. 6. The appellants contend in this appeal, regarding rejection of their claim by the excise authorities below, that whatever duty was collected from them on die cast cages for rotors was not authorised under law and whole amount of duty was paid "under protest" that they were entitled to receive it back after Collector, Central Excise, Bombay had held in their favour to the effect that no central excise duty was recoverable from them. They plead that even the Appellate Collector had accepted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty. He argued that refund claim was filed pursuant to this order of the Collector and that duty was undisputedly paid under protest and that provisions of Proviso to Rule 56A(2) of the Central Excise Rules explicitly provided for adjustment of duty amounts allowed erroneously by way of proforma credit, and even recovery thereof in cash in certain cases from the party concerned, who would be customers of the appellants in this case. He has urged that the Department ought to take recourse to these provisions and that there was no justification for rejection of the refund claim filed by the appellants, on the solitary ground that proforma credit having been availed of by the customers of the appellants, they were not entitled to refund of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for whatsoever reason. The fact that some third party/parties have availed benefit, under some different dispensation, of the amount unduly recovered from the appellants could not be held as a ground to deny refund to the appellants, which on principle, has been recognised to be available to them. We find that the Appellate Collector was not right in holding that the provisions of Rule 56A, as cited by the appellants did not cover such situations because in our view the third proviso to Rule 56A(2) is in very clear terms, inasmuch as it contemplates that whenever duty paid on any material or component parts, is varied subsequently, due to any reason (emphasis supplied) and a refund is the result then the credit allowed under Rule 56A coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it has been paid out as 56A credit. The effect is that the excess has been returned to this claimant. 13. Refund must be made only from money received in excess of what is due to the state (compensation is not governed by this principle of revenue). Any money that is sought as refund by a citizen must, firstly, be shown to be excess money paid, and, secondly, payable under the law. This is why before refund is given, the revenue office verified that such money was, in fact, paid. To rephrase, only money paid in excess, and available, can be paid as refund. Such excess is not revenne, and if the claim is not affected by any disability, it must be paid. 14. For this reason, no refund can be paid from revenue. When a refund is paid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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