Limitation for refund of advance deposit follows the Limitation Act, with time counted from cessation of scheme liability.

For refund of an advance deposit, the applicable limitation was held to arise under the Limitation Act and not under Rule 11 of the Central Excise Rules. Limitation was to be counted from the later of the date the assessees ceased to operate under the Compounded Levy Scheme or the date they were finally absolved of liabilities under that scheme, and on that basis the refund claim was not barred by limitation.

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Issues: Whether the refund claim for advance deposit was barred by limitation, and whether the period of limitation was to be governed by the Limitation Act rather than Rule 11 of the Central Excise Rules.

Analysis: The revision authority held that, for refund of advance deposit, the applicable limitation was under the Limitation Act and not under Rule 11 of the Central Excise Rules. It also held that limitation had to be counted from the later of the date on which the petitioners ceased to operate under the Compounded Levy Scheme or the date on which they were finally absolved of liabilities under that scheme.

Conclusion: The refund claim was not barred by limitation.

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