Refund of excess service tax is barred by Section 11B limitation unless the payment was made under protest.

Where service tax was admittedly payable but had been paid in excess, a refund claim had to comply with the one-year limitation under Section 11B of the Central Excise Act, 1944, computed from the relevant date of payment of duty under Explanation (B)(f). The proviso for payments made under protest did not apply because the tax was not paid under protest. Accordingly, the refund claim for the period beyond one year was barred by limitation and was not maintainable.

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Issues: Whether the claim for refund of excess service tax paid by an assessee who was otherwise liable to pay the tax was barred by limitation under Section 11B of the Central Excise Act, 1944.

Analysis: The refund related to service tax admittedly payable on the services rendered, but paid in excess for an earlier period. In such a case, refund has to be sought within the limitation prescribed by Section 11B(1) of the Central Excise Act, 1944, counted from the relevant date, namely the date of payment of duty under Explanation (B)(f). The portion of the claim filed beyond one year was not saved by the proviso relating to payment under protest, since the tax was not paid under protest.

Conclusion: The refund claim for the period beyond the one-year limitation was barred, and the answer to the question framed was against the assessee and in favour of the Department.

Ratio Decidendi: Where service tax is admittedly payable, a claim for refund of excess tax paid must comply with the limitation period under Section 11B of the Central Excise Act, 1944, computed from the date of payment unless the payment was made under protest.

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