Mistake of law and excise refund: statutory limitation did not bar writ relief for unlawful duty recovery.

Excise duty collected without authority of law was treated as money paid under mistake of law, and the Department could not retain it. The High Court held that, in writ jurisdiction, the statutory limitation under section 11B and the refund rules did not bar relief where the assessee sought restitution of amounts unlawfully recovered. The refund claim was therefore maintainable in writ proceedings, and refund was held payable to the petitioner.

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Issues: Whether the limitation under section 11B and the corresponding refund rules barred a writ petition seeking refund of excise duty paid under mistake of law.

Analysis: The Court held that excess excise duty collected without authority of law could not be retained by the Department. It treated the payment as one made under mistake of law and applied the settled principle that, in writ jurisdiction, the statutory limitation governing departmental refund claims does not preclude relief when the assessee seeks restitution of amounts unlawfully recovered.

Conclusion: The limitation under section 11B and the refund rules did not defeat the claim in writ proceedings, and the refund was held payable in favour of the petitioner.

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