Refund limitation under Central Excise law applies to cess paid under mistake of law; claim was held time-barred.

Refund of Education Cess and Secondary and Higher Education Cess paid on Oil Industry Development Cess was held to be governed by the refund machinery under the Central Excise Act, 1944 as a complete code. The majority view applied section 11B to claims arising from payment under mistake of law, including in an illegal levy situation, and held that the statutory limitation period could not be ignored by departmental authorities or the Tribunal. Earlier decisions cited by the claimant were distinguished on the facts and legal setting. The refund claim was therefore held to be beyond time and not maintainable before the statutory authorities.

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Issues: Whether the refund claim for Education Cess and Secondary and Higher Education Cess paid on Oil Industry Development Cess was barred by limitation under section 11B of the Central Excise Act, 1944.

Analysis: The refund arose from cess paid on Oil Industry Development Cess after a later circular clarified that Education Cess and Secondary and Higher Education Cess were not to be calculated on cesses levied under Acts administered by departments other than the Ministry of Finance. The governing statutory scheme treated refunds under the Central Excise Act, 1944 as a complete code. The majority held that a claim arising from payment under mistake of law in an illegal levy situation had to be pursued under section 11B, and that the statutory time limit could not be ignored by departmental authorities or the Tribunal. The earlier judicial opinions relied on by the appellant were distinguished in the final majority view, and the refund claim was held to be beyond time.

Conclusion: The refund claim was barred by limitation under section 11B of the Central Excise Act, 1944 and was not maintainable before the statutory authorities.

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