Provisional excise duty payment supports refund where the claim is timely under limitation rules.

Refund of excess Central Excise duty was upheld because the claim was filed within the limitation period under Section 11-B and the duty had been paid provisionally until the price lists were finalised. The original rejection on limitation and unjust enrichment was not sustained, and the Commissioner (Appeals) allowance of the refund was affirmed.

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Issues: Whether the refund claim was barred by limitation under Section 11B of the Central Excise Act when the price lists were approved only later and the duty payments were provisional until such approval.

Analysis: The claim related to duty paid on clearances made when the price lists were still pending approval. On the facts, the duty payment remained provisional until the price lists were approved on 6-5-83. The limitation under Section 11B therefore commenced only from that date. The refund application filed on 13-9-83 was within six months from the date when the payment ceased to be provisional. The refund was also supported by the principle applied by the Larger Bench that payments made while classification or price-list approval is pending are provisional in nature.

Conclusion: The refund claim was not time-barred and was rightly allowed.

Final Conclusion: The appeal failed and the refund order in favour of the assessee was sustained.

Ratio Decidendi: Where duty is paid while approval of the relevant price list is pending, the payment is provisional and the limitation for refund runs only from the date of final approval.

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