Time barred Excise duty Refund claim paid under Protest by buyer & manufacturer

CCE Vs Allied Photographics India Ltd. (Supreme Court)

Supreme Court has rejected time-barred refund claim of central excise duty by the buyer, in a case where duty was paid under protest by the manufacturer- seller. It observed that scheme of Excise Section 11B makes a distinction between rights of a manufacturer and that of the buyer.

FULL TEXT OF THE SUPREME COURT JUDGEMENT

Finding inconsistencies between two decisions of three-Judge Benches of this Court in the case of Sinkhai Synthetics and Chemicals Pvt. Ltd. v. Collector of Central Excise [2002 (143) ELT 17] and Collector of Central Excise, Chennai v. T.V.S. Suzuki Ltd. [2003 (156) ELT 161] on one hand and the decision of nine- Judge Constitution Bench in Mafatlal Industries Ltd. v. Union of India [(1997) 5 SCC 536] on the other, a two- Judge Bench of this Court vide order dated 13.11.2003 has referred the following question of law involved in this civil appeal to a larger Bench and accordingly the matter has come before this court.

“Whether a claim for refund after final assessment is governed by Section 11 B of the Central Excise Act 1944?

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