The Supreme Court of India has recently rejected the excise duty rebate claim of M/s Sansera Engineering Limited as the same was time-barred under the Section 11B of the Central Excise Act, 1944.
The appellants had made the claim for rebate as they had filed claims for rebate of duty paid on the goods exported to the tune of Twenty Nine Lakh Rupees and Forty Two Lakh Rupees under the Rule 18 of Central Excise Rules, 2002. Subsequently, for the period October 2015 to March 2016, the appellant also claimed a rebate of One Crore Forty Seven Lakh Rupees.
Arvind P Datar, submitted on behalf of the appellant that, the grant of rebate of duty paid on excisable goods or duty paid as provided under Rule 18 of Central Excise Rules is different from that of refund of duty entitled under Section 11B of the Central Excise Act.
Siddhant Kohli, on behalf of the revenue raised opposing submissions that it was specifically observed and held by this Court that the period of limitation prescribed under Section 11B of the Central Excise Act shall be applicable with respect to rebate of duty.
It was also submitted that as per Explanation (A) to Section 11B of the Central Excise Act, for the purpose of Section 11B, “refund” includes rebate of duty of excise and therefore, the period of limitation of one year prescribed under Section 11B of the Central Excise Act shall be applicable with respect to the rebate of duty.
It was further submitted on behalf of the revenue that Section 11B of the Central Excise Act can be said to be a parent statute and Rule 18 of Central Excise Rules and the Notification dated 6.9.2004 can be said to be a subordinate legislation.
Siddhant Kohli, on behalf of the Revenue has further submitted that if the submission on behalf of the appellant that the period of limitation of one year prescribed under Section 11B of the Act shall not be applicable with respect to claim for rebate is accepted, in that case, there shall not be any limitation at all and at any time, exporters can make an application for rebate claims.
It was observed that “while making claim for rebate of duty under Rule 18 of the Central Excise Rules, 2002, the period of limitation prescribed under Section 11B of the Central Excise Act, 1944 shall have to be applied and applicable” and held that, the respective claims were beyond the period of limitation of one year from the relevant date, the same are rightly rejected by the appropriate authority and the same are rightly confirmed by the High Court.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates.
