Appellate tribunal grants refund claim appeal, citing exception to time limit rule under Central Excise Act.

The appellate tribunal allowed the appeal, setting aside the order that dismissed the refund claim as time-barred under Section 11B of the Central Excise Act. The tribunal held that the time limit does not apply when duty is paid under protest, as per the proviso to Section 11B. The tribunal found that the refund claim was filed within the limitation period after the protest was vacated, and the initial denial based on being time-barred was not sustainable. Consequently, the tribunal granted consequential relief to the appellant.

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Issues:
- Appeal against dismissal of refund claim as time-barred under Section 11B of the Central Excise Act.

Analysis:
- The appellant filed a refund claim for Service Tax and interest paid on supervision charges for the period from July 2012 to August 2014, amounting to &8377; 46,07,489. The claim was based on inadvertently paying the tax twice due to payments made by both the Corporate office and Divisional offices. The claim was initially denied due to being time-barred under Section 11B of the Central Excise Act, filed on 17.01.2017 for the period beyond one year from the relevant date.
- The appellant argued that the duty was paid twice under protest, and the refund claim should not be time-barred. They highlighted that the duty paid under protest was withdrawn after an order dated 09.01.2017, and the refund claim filed on 17.01.2017 was within the limitation period. The appellant relied on the proviso to Section 11B, stating that the time limit does not apply when duty is paid under protest.
- The Adjudicating Authority vacated the protest and appropriated the amount towards the demand in the Order-in-Original dated 09.01.2017. The appellate tribunal found that the refund application was filed after the vacation of the protest, and the protest was valid until the order was passed. The tribunal noted that the time limit of one year under Section 11B does not apply when duty is paid under protest, as per the proviso.
- The tribunal concluded that the impugned order rejecting the appeal on the basis of being time-barred was not sustainable in law. The appeal was allowed, setting aside the order, and granting consequential relief to the appellant. The decision was pronounced in open court on 22/01/2019.

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