Limitation for recovery of refund runs from actual credit, while unanswered refund entitlement issues may require remand.

For recovery of an erroneously sanctioned refund, limitation under Section 11A ran from the date the refund was actually given effect to by taking credit, not from the date of sanction; on that basis, the notice was held within time. Because the Commissioner (Appeals) had not examined entitlement to refund on merits, that issue remained open and the matter was remanded for fresh adjudication on merits.

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Issues: (i) Whether the notice for recovery of duty refund was barred by limitation under Section 11A of the Central Excise Act, 1944. (ii) Whether the matter required remand because the entitlement to refund on merits had not been decided by the appellate authority.

Issue (i): Whether the notice for recovery of duty refund was barred by limitation under Section 11A of the Central Excise Act, 1944.

Analysis: The limitation period was to be reckoned from the date on which the refund was actually given effect to by taking credit, not from the earlier date of sanctioning of refund. On that basis, the notice seeking recovery of the refund was within time.

Conclusion: The limitation objection failed and the notice was held to be within time, in favour of Revenue.

Issue (ii): Whether the matter required remand because the entitlement to refund on merits had not been decided by the appellate authority.

Analysis: The entitlement to refund on merits had not been examined by the Commissioner (Appeals), and that issue remained open for adjudication.

Conclusion: The matter was remanded to the Commissioner (Appeals) for on merits.

Final Conclusion: The revenue's appeal succeeded on the limitation question, but the dispute over refund entitlement was sent back for fresh consideration on merits.

Ratio Decidendi: For recovery of an erroneously sanctioned refund, limitation under Section 11A runs from the date on which the refund is actually given effect to, not from the date of sanction.

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