Refund limitation runs from finalisation of assessment; claims were found timely and remanded for unjust enrichment scrutiny.

Refund claims arising from duty paid at a higher specific rate pending approval of the classification list were treated as timely because the assessment process had not reached finality until the classification list was approved and the RT-12 assessments were finalised. On that basis, the applications filed after approval of the lower tariff rate were found to fall within the refund limitation period. The matter was to be examined by the original authority on merits, with the assessee given an opportunity to show that the duty incidence had not been passed on, as the claim remained subject to the doctrine of unjust enrichment.

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Issues: Whether the refund claims were barred by limitation and whether the refund could be considered on the basis that the assessments were pending finalisation when the classification list was approved.

Analysis: The refund claim arose from duty paid at a higher specific rate pending approval of the classification list, which was later approved at the tariff rate. The Tribunal treated the assessment process as not having attained finality until the classification list was approved and the RT-12 assessments were finalised under the then applicable excise procedure. On that basis, the refund applications filed after approval of the lower tariff rate were held to be within the prescribed period under the refund provisions. The Tribunal further directed that the claim be examined by the original authority subject to the doctrine of unjust enrichment and after giving the assessee an opportunity to produce evidence that the duty burden had not been passed on.

Conclusion: The refund claims were held to be within limitation and the bar of limitation was rejected; the refund was directed to be considered on merits, subject to unjust enrichment.

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