Wrongly debited Cenvat credit restored as an accounting correction, not a refund claim under Section 11B.

Wrongly debited Cenvat credit, when later corrected by payment through TR-6 challan and a claim for restoration, was treated as an accounting adjustment rather than a refund claim. The Tribunal held that the real character of the relief was restoration of the account position, so the limitation and procedural requirements of Section 11B of the Central Excise Act did not apply. Earlier Revenue reliance on refund limitation was therefore inapplicable, and credit restoration was permitted.

---

---

Issues: Whether restoration of wrongly debited credit was a refund governed by Section 11B of the Central Excise Act, 1944, or merely an accounting correction not subject to refund limitation.

Analysis: The dispute concerned duty debited through the Cenvat account in circumstances where the debit was said to be incorrect and later corrected by payment through TR-6 challan and a claim for restoration of credit. The earlier decision relied on by the Revenue on refund limitation under Section 11B was held inapplicable because the real question was the character of the relief sought. The Tribunal preferred the view taken in Division Bench decisions holding that where credit is wrongly debited and the correction only restores the position in the account, the exercise is an arithmetical or accounting adjustment and not a refund claim. On that basis, the limitation and procedure attached to Section 11B did not apply.

Conclusion: Restoration of the credit was not a refund under Section 11B but an accounting correction, and the assessee was entitled to the credit restoration.

---