Limitation for refund of excess interest on provisional assessment runs from payment date, not from later appellate observations.

A refund claim for excess interest paid on provisional assessment was held time-barred because it was filed beyond the normal one-year limitation period counted from the date of payment. An earlier appellate observation that a refund claim could be made did not shift or extend the statutory limitation period to the date of the appellate order, and the authorities could not enlarge it by interpretation. The assessee had withdrawn the appeal against the interest liability order, allowing that order to attain finality. The refund was therefore rightly rejected as barred by limitation.

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Issues: Whether the refund claim for excess interest paid on provisional assessment was barred by limitation when filed beyond one year from the date of payment.

Analysis: The refund application was filed after expiry of the normal one-year period applicable to refund of excess payments. The earlier appellate observation that a refund claim could be filed did not extend or shift the statutory period of limitation from the date of payment to the date of the appellate order. The assessee could have challenged the interest liability order but instead withdrew the appeal, allowing that order to attain finality. The adjudicating and appellate authorities could not extend the limitation period by interpretation.

Conclusion: The refund claim was barred by limitation and was rightly rejected.

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