Revenue deposits under compounded levy scheme are outside Section 11B refund limits where no production or clearance occurred.

Amounts paid under a compounded levy scheme through TR6 challans, where no production or clearance occurred because electricity supply was disconnected, were treated as revenue deposits rather than duty on excisable goods. On that basis, the refund claim was not governed by the limitation in Section 11B, which applies to duty refunds and not to revenue deposits. Rule 96ZB was read as permitting adjustment where payment exceeded the revised liability under the compounded levy framework. The rejection of the refund claim was therefore unsustainable, and the assessee was entitled to the disputed refund.

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Issues: Whether the amount paid under the compounded levy scheme, when no production or clearance had taken place, was a revenue deposit not governed by the limitation under Section 11B; and whether refund was admissible under Rule 96ZB.

Analysis: The payment made through TR6 challans was not linked to any excisable goods manufactured or cleared during the relevant period, as there was no production because of disconnection of electric supply. The amount was therefore a deposit and not a claim for refund of duty on cleared goods. Section 11B applies to refund of duty, but it does not govern revenue deposits. The Tribunal also noted that Rule 96ZB dealt with adjustment of duty under the compounded levy scheme and covered cases where payment exceeded the revised liability.

Conclusion: The refund claim was not barred by Section 11B and the rejection of the part claim was unsustainable. The appeal was allowed in favour of the assessee.

Final Conclusion: The lower authorities' rejection of the refund claim was set aside, and the assessee was held entitled to the disputed refund under the compounded levy framework.

Ratio Decidendi: Amounts paid as revenue deposits, and not as duty on manufactured and cleared excisable goods, are not subject to the refund limitation under Section 11B of the Central Excise Act, 1944.

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