Refund limitation under excise exemption turns on year-end ascertainability of eligibility, not earlier awareness of excess duty.

Where eligibility for an exemption notification depends on the final year-end position of clearances, the limitation period for claiming refund of excess central excise duty starts only when that position becomes ascertainable at the close of the relevant financial year. On that basis, a refund claim filed after excess duty was paid without availing the exemption was not barred by limitation and had to be examined on merits. The order treating the claim as time-barred was set aside, and the refund application was directed to be decided on the merits.

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Issues: Whether the limitation period for filing a refund claim for excess central excise duty paid without availing the benefit of the exemption notification was to be computed from the date when the assessee became aware at the end of the financial year that the clearances would not exceed the prescribed limit.

Analysis: The claim related to excess duty paid on metal containers during the financial year and the assessee had not availed the exemption available under the relevant notification. The question was when the statutory period for refund began to run. The determining factor was when the correct position regarding eligibility for the notification could be known, which in such cases emerged only on the close of the relevant financial year, not earlier.

Conclusion: The refund claim was not barred by limitation and had to be considered on merits.

Final Conclusion: The order rejecting the claim as time-barred was set aside and the refund application was directed to be decided on merits.

Ratio Decidendi: Where eligibility for exemption under a notification depends on the year-end position of clearances, limitation for refund is to be computed from the close of the relevant financial year when eligibility first becomes ascertainable.

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