Section 11D cannot recover unpaid excise duty; section 11A governs such demands and limitation barred recovery.

Section 11D of the Central Excise Act cannot be used to recover duty allegedly collected but not deposited where the department's case is that duty was not levied or not paid on clearances. That situation falls under section 11A, which governs recovery of duties not levied, not paid, short levied, short paid, or erroneously refunded and carries its own limitation period. The provision for unjust enrichment does not replace the statutory basis for recovery, and the amended reference to self-assessment did not assist the department for the relevant period. As the show-cause notice was issued beyond the permissible period, the demand was barred by limitation and could not be sustained.

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Issues: Whether section 11D of the Central Excise Act, 1944 could be invoked for recovery of duty allegedly collected but not deposited, and whether the demand was barred by limitation under section 11A of the Central Excise Act, 1944.

Analysis: Section 11D contemplates deposit of amounts collected from buyers as duty only where such collection is in excess of duty assessed or determined and paid, and operates as a machinery provision pending finalisation of assessment. The provision presupposes assessment or determination of duty and does not itself create the substantive liability to recover duties not levied or not paid. Where the department's case is that duty was not paid on clearances, the proper recourse is section 11A, which specifically governs recovery of duties not levied, not paid, short levied, short paid, or erroneously refunded, and carries its own period of limitation. The amended definition of assessment including self-assessment could not assist the department for the relevant period, and the plea of unjust enrichment could not substitute for a statutory basis of recovery. Since the show-cause notice was issued beyond the permissible period, the demand could not be sustained.

Conclusion: Section 11D was held inapplicable to the facts, section 11A was held to be the governing provision, and the demand was barred by limitation. The appeal was answered against the Revenue and in favour of the assessee.

Ratio Decidendi: Section 11D is only a machinery provision for amounts collected as duty and cannot be used to recover duty not levied or not paid, which must be proceeded against under section 11A subject to limitation.

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