Refund limitation under Section 11B runs from duty payment date, and unjust enrichment must be examined before grant of refund.

For refund claims under Section 11B, limitation runs from the date of payment of duty rather than the date of D-3 intimation, so the claim was not time-barred on the facts stated and the rejection on limitation was unsustainable. The refund application also had to be tested against the principle of unjust enrichment, which the authorities had not examined, so that issue required consideration in fresh adjudication. The order rejecting refund was set aside and the matter was remanded for de novo decision on limitation and unjust enrichment.

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Issues: (i) whether the refund claim was barred by limitation under Section 11B; and (ii) whether the refund claim required examination on the principle of unjust enrichment.

Issue (i): whether the refund claim was barred by limitation under Section 11B.

Analysis: The relevant date for computing limitation was the date of payment of duty and not the date of D-3 intimation. On that basis, the refund claim relating to duty paid on 26-5-99 was not time-barred when filed on 21-9-99. The rejection by the authorities on the premise of limitation was therefore unsustainable.

Conclusion: The refund claim was not barred by limitation and required reconsideration.

Issue (ii): whether the refund claim required examination on the principle of unjust enrichment.

Analysis: The authorities had not examined the claim with reference to unjust enrichment. That aspect also had to be considered in the fresh adjudication of the refund application.

Conclusion: The claim had to be examined on the principle of unjust enrichment in the de novo proceedings.

Final Conclusion: The order rejecting refund was set aside and the matter was sent back for fresh adjudication of the refund claim on limitation and unjust enrichment.

Ratio Decidendi: For refund claims under Section 11B, limitation runs from the date of payment of duty, and the claim must also be tested against unjust enrichment before grant of refund.

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