Refund limitation under Section 11B runs from duty payment absent protest or provisional assessment, later clarification aside

Where duty is neither paid under protest in the prescribed manner nor assessed provisionally, the six-month refund limitation runs from the date of payment of duty, and a later departmental clarification does not extend that statutory period. On those facts, the refund claim was time barred. The note also records that an addendum to the show cause notice was treated as valid because it was issued before adjudication, rested on existing facts, and introduced no new factual basis.

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Issues: (i) Whether the addendum to the show cause notice adding the ground of time bar was valid. (ii) Whether the refund claim was barred by limitation under Section 11B of the Central Excise Act, 1944.

Issue (i): Whether the addendum to the show cause notice adding the ground of time bar was valid.

Analysis: The addendum was issued before adjudication, was founded on existing facts, and did not introduce any new factual basis. Even if treated as a fresh notice, it was only in relation to rejection of the refund claim and did not suffer from any time bar.

Conclusion: The addendum was valid.

Issue (ii): Whether the refund claim was barred by limitation under Section 11B of the Central Excise Act, 1944.

Analysis: The period of six months under Section 11B runs from the relevant date, which in the present facts was the date of payment of duty, since the duty was neither paid under protest in the manner prescribed by Rule 233B of the Central Excise Rules, 1944 nor was there any provisional assessment under Rule 9B of the Central Excise Rules, 1944. The later departmental clarification did not shift the relevant date, and the claim filed beyond six months from the date of payment was therefore time barred.

Conclusion: The refund claim was barred by limitation.

Final Conclusion: The rejection of the refund claim was upheld and the appeal failed.

Ratio Decidendi: Where duty is neither paid under protest nor assessed provisionally, the limitation for refund under Section 11B of the Central Excise Act, 1944 is computed from the date of payment of duty, and a later clarification or eligibility determination does not extend the statutory period.

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