Refund limitation under excise law runs from the exemption declaration, not later quantification or formal claim filing.

For refund claims linked to an exemption notification, a timely prescribed declaration can amount to staking the exemption claim, so limitation under Rule 11 of the Central Excise Rules, 1944 runs from that declaration and not from later quantification or formal refund presentation. The Tribunal also held that the notification did not require the concession to be claimed only at the time of clearance of the excess goods, and that Rule 11 was broad enough to cover the claim, so a civil suit was not necessary. The refund rejection was therefore set aside and the claim directed to be considered as within limitation.

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Issues: Whether the refund claim under Notification No. 198/76-Central Excises was barred by limitation under Rule 11 of the Central Excise Rules, 1944; and whether the claim was outside Rule 11 so that the appellants were required to pursue a civil suit.

Analysis: The refund claim arose from excess clearances during the relevant period after the notification came into force. The Tribunal held that the prescribed declaration filed before the Assistant Collector constituted the staking of the claim for exemption, and limitation under Rule 11 stopped running from that date. The later quantification and formal refund claim were treated as immaterial for limitation purposes. The Tribunal also found no stipulation in the notification requiring the concession to be availed only at the time of clearance of the excess goods. On the alternative plea, the expressions used in Rule 11 were held wide enough to cover the appellants' claim, and there was no basis to compel a civil suit.

Conclusion: The refund claim was not time-barred under Rule 11, and the alternative objection that only a civil suit lay was rejected.

Final Conclusion: The appeal succeeded, the rejection order was set aside, and the refund claim was directed to be considered on the footing that it was within limitation.

Ratio Decidendi: For refund claims connected with an exemption scheme, timely filing of the prescribed declaration may amount to staking the claim for exemption, and limitation under Rule 11 of the Central Excise Rules, 1944 is computed from that date rather than from subsequent quantification or formal refund presentation.

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