Compounded levy refund claims are not time-barred under section 11B where the special scheme excludes general excise limitation.

The compounded levy scheme under the Pan Masala Packing Machine (Capacity Determination and Collection of Duty) Rules, 2008 operates as a self-contained code, so general excise provisions apply only where they are consistent with that special framework. On that basis, the limitation under section 11B of the Central Excise Act, 1944 was held inapplicable to a refund claim arising from abatement of duty under the scheme. The refund could therefore not be rejected as time-barred, and refund relief was granted to the assessee.

---

---

Issues: Whether the limitation prescribed under section 11B of the Central Excise Act applies to a refund claim arising under the compounded levy scheme governed by the Pan Masala Packing Machine (Capacity Determination and Collection of Duty) Rules, 2008.

Analysis: The refund claim arose from abatement of duty under the compounded levy scheme. The operative question was whether the general refund limitation under section 11B could be imported into that special scheme. Relying on the principle that the compounded levy scheme is a self-contained and comprehensive code, and that general provisions of the Central Excise Act and Rules stand excluded where inconsistent with such special scheme, the limitation under section 11B was held inapplicable. The reasoning was supported by earlier decisions holding that the special scheme governs refund and excess payment issues without importing the normal excise limitation regime.

Conclusion: Section 11B of the Central Excise Act, 1944 does not apply to the refund claim arising under the compounded levy scheme; the refund could not be rejected as time-barred. The appeal was therefore allowed and the refund relief was granted to the assessee.

---