Court rules penalties are not subject to refund time limit; Assistant Collector's orders overturned; appellants to receive penalty refund.

The court held that the time limit for refund under Rule 11 does not apply to penalties, as penalties are distinct from charges. The Assistant Collector's orders were overturned, and the appellants were directed to receive a refund of the penalties. The appeals were successful.

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The judgment in the case of Collector of Central Excise, New Delhi states that the time limit for refund under Rule 11 does not apply to penalties. Penalties are different from charges, and the time limit is only for duties and charges. The Assistant Collector's orders were set aside, and refund of penalties was directed to be made to the appellants. The appeals were accepted.

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