Refund limitation runs from appellate relief order, and payment made during a contested demand can count as under protest.

Refund claims arising from appellate relief under section 11B of the Central Excise Act, 1944 were treated as accruing only when the demand was set aside in appeal, so limitation ran from the date of the relief order and not from the date of payment. Payment made while contesting the demand was treated as made under protest because the assessee had already challenged the levy, and formal compliance with rule 233B was not required in that setting. The refund provisions were applied to preserve restitution after judicial relief, and the time-bar rejection was held incorrect, with the refund claim allowed.

---

---

Issues: Whether the limitation under section 11B of the Central Excise Act, 1944 for refund claims arising from appellate relief runs from the date of payment of duty or from the date of the order granting relief, and whether such payment made during contest of the demand can be treated as having been made under protest.

Analysis: The claim for refund arose only after the duty demand was set aside in appeal. The statutory limitation for refund cannot be applied so as to defeat restitution where the assessee had challenged the demand and the payment was made in the course of that dispute. Filing an appeal against the demand was treated as sufficient protest, and formal compliance with rule 233B was not necessary in such circumstances. The refund provisions must be applied to give effect to judicially ordered restitution rather than to deny relief on a rigid reading of limitation from the date of payment.

Conclusion: The limitation under section 11B was held to run from the date of the order granting relief, not from the date of payment. The refund rejection as time-barred was incorrect, and the claim was allowed in favour of the assessee.

---