Pre-deposit refund and limitation: appellate relief fixes accrual of refund, and Section 11BB does not govern the claim.

Refund of a pre-deposit made during investigation accrues only when the appellate authority grants relief, so the claim is not governed by the one-year limitation counted from the date of payment of duty. The Tribunal stated that Section 11BB of the Central Excise Act does not apply to refund of such a pre-deposit, and non-compliance with Rule 233-B of the Central Excise Rules cannot defeat the refund where the right to return arose only after a favourable appellate order.

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Issues: Whether the limitation under Section 11BB of the Central Excise Act, 1944 applies to refund of a pre-deposit made during investigation, and whether non-compliance with Rule 233-B of the Central Excise Rules, 1944 can defeat such refund.

Analysis: The refund claim arose from a pre-deposit made during investigation and became payable only after the Commissioner (Appeals) passed an order in favour of the assessee. The Tribunal held that such a refund could not be tested by the one-year limitation counted from the date of payment of duty, because the right to refund accrued only on the favourable appellate order. It further held that the statutory limitation under Section 11BB was not applicable to refund of a pre-deposit.

Conclusion: Section 11BB did not apply to the refund of the pre-deposit, and the Revenue's objection on limitation and Rule 233-B failed.

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