Refund eligibility for returned duty-paid goods and limitation for exported goods turn on frontier-crossing date under excise law.

Duty-paid goods cleared for domestic consumption, returned to the factory under D-3 intimation and later exported, remained eligible for refund because the duty incidence had already been suffered and export did not extinguish the substantive refund entitlement. The earlier contrary view was treated as no longer good law. For limitation, the relevant date for exported goods was the date the goods crossed the Indian frontiers under Section 11B of the Central Excise Act, 1944; the claim having been filed within one year from that date, it was not time-barred. Rejection of refund was therefore unsustainable and consequential relief followed.

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Issues: (i) Whether duty-paid goods cleared for domestic consumption, later returned to the factory under D-3 intimation and ultimately exported, were eligible for refund or rebate. (ii) Whether the refund claim was barred by limitation, and what was the relevant date for computing the period of limitation.

Issue (i): Whether duty-paid goods cleared for domestic consumption, later returned to the factory under D-3 intimation and ultimately exported, were eligible for refund or rebate.

Analysis: The goods had originally suffered central excise duty when cleared to the domestic tariff area, were brought back to the factory under D-3 intimation, and were thereafter exported. On these facts, the duty incidence had already been suffered, and the later export did not destroy the assessee's substantive entitlement to seek refund. The earlier view relied on by the lower authority was treated as no longer good law in light of the later contrary decision.

Conclusion: The assessee was entitled to refund on merits.

Issue (ii): Whether the refund claim was barred by limitation, and what was the relevant date for computing the period of limitation.

Analysis: For exported goods, the relevant date for limitation was held to be the date on which the goods crossed the Indian frontiers under Section 11B of the Central Excise Act, 1944. The claim was filed within one year from that date, and therefore was not time-barred.

Conclusion: The refund claim was within limitation and not barred by time.

Final Conclusion: The rejection of refund was unsustainable, and the appeal succeeded with consequential relief.

Ratio Decidendi: For exported goods, limitation for refund is computed from the date of crossing the Indian frontiers, and duty-paid goods returned to the factory and exported remain eligible for refund if the claim is otherwise within time.

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