Statutory refund limitation governs mistaken excise duty payments; unilateral PLA credit cannot replace a timely refund claim.

Duty paid though not payable had to be reclaimed through a refund application under Section 11B of the Central Excise Act within six months from the relevant date. A belated refund claim was therefore time-barred. The Tribunal further stated that the assessee could not unilaterally take credit in the PLA in place of a statutory refund claim, and any credit wrongly taken had to be reversed if refund failed. The matter turned on compliance with the statutory refund mechanism and limitation period, not on a self-adjusted credit entry.

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Issues: Whether the refund claim for duty paid by mistake was barred by limitation under Section 11B of the Central Excise Act, 1944, and whether the assessee could unilaterally take credit in the PLA without filing a timely refund claim.

Analysis: Though the goods had been cleared under bond, duty had been paid though not payable. The proper course open to the assessee was to seek refund under Section 11B within six months from the relevant date. The refund application was filed beyond that period and was therefore time-barred. The Tribunal also held that there was no provision permitting the assessee to take credit in the PLA on its own in lieu of a refund claim, and any credit wrongly taken had to be debited when the refund claim failed.

Conclusion: The refund claim was barred by limitation and the assessee was not entitled to retain the self-taken PLA credit; the appeal failed.

Ratio Decidendi: Where duty is paid but claimed to be not payable, refund can be pursued only in accordance with Section 11B within the prescribed limitation, and no unilateral credit in the PLA can substitute for a statutory refund claim.

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