Limitation for quarterly CENVAT refund claims runs from quarter-end when FIRCs are received; refund matter remanded for reconsideration.

Quarterly refund claims for unutilised CENVAT credit under Rule 5 of the CENVAT Credit Rules, 2004 are subject to limitation by reference to the end of the quarter in which the FIRCs are received. A Larger Bench ruling had already settled this computation method, so the refund could not be rejected on the limitation basis adopted by the lower authority. The matter was remanded to the original authority for reconsideration of the refund claim in line with that binding clarification and the applicable limitation period under Section 11B as applied to service tax refunds.

---

---

Issues: Whether the refund claim for unutilised CENVAT credit was liable to be rejected as time-barred and, in view of the Larger Bench ruling, whether the matter required remand for fresh decision.

Analysis: The refund was rejected by applying the limitation under Section 11B of the Central Excise Act, 1944 as made applicable to service tax refunds. The Tribunal noted that a Larger Bench had already settled the controversy on the relevant date for computing limitation in quarterly refund claims under Rule 5 of the CENVAT Credit Rules, 2004, holding that the period is to be reckoned with reference to the end of the quarter in which the FIRCs are received. In light of that binding clarification, the limitation question could not be finally decided against the appellant on the basis adopted by the lower authority.

Conclusion: The appeal was remanded to the original authority for reconsideration of the refund claim in accordance with the Larger Bench ruling.

Ratio Decidendi: For quarterly refund claims under Rule 5 of the CENVAT Credit Rules, 2004, the relevant date for limitation is the end of the quarter in which the FIRCs are received.

---