Refund of unutilized deemed credit is subject to Section 11B limitation when the notification expressly so provides.

Refund of unutilized deemed credit under the compounded levy and Cenvat credit scheme was held subject to the limitation period in Section 11B of the Central Excise Act, 1944 because Notification No. 11/2002-C.E. (N.T.) expressly incorporated that time limit. A claim filed beyond the prescribed period was therefore time-barred, and the rejection of refund on limitation was upheld.

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Issues: Whether the refund claim for unutilized deemed credit was governed by the limitation period prescribed under Section 11B of the Central Excise Act, 1944.

Analysis: The refund claim arose from unutilized deemed credit under the compounded levy and Cenvat credit scheme. Notification No. 11/2002-C.E. (N.T.) dated 1-3-2002, issued under Rule 5 of the Cenvat Credit Rules, 2002, provided for refund of unutilized deemed credit and expressly made such refund subject to the time limit under Section 11B of the Central Excise Act, 1944. As the claim was filed beyond that period, the rejection on limitation was upheld.

Conclusion: The refund claim was time-barred and the limitation under Section 11B applied. The issue was decided against the assessee and in favour of Revenue.

Final Conclusion: The appellate challenge failed because the refund was correctly rejected as barred by limitation.

Ratio Decidendi: Where a refund notification expressly incorporates the limitation period under Section 11B of the Central Excise Act, 1944, a refund claim under that notification must comply with that statutory time limit.

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