Statutory limitation bars refund and Modvat credit claims even after a favourable classification order and ended protest.

Refund and Modvat credit claims must comply with the statutory limitation period, even where the assessee had earlier succeeded in classification proceedings. The Tribunal held that an appellate order in favour of the assessee could not override the express time limits governing refund or credit adjustment, and the lapse of about three years was material. The plea of continuing protest also failed because the protest had already ceased before the claim was made. The claim was therefore barred by limitation and could not be allowed.

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Issues: Whether a refund or Modvat credit claim filed about three years after the favourable appellate order could be allowed despite the statutory time limits and the cessation of protest.

Analysis: The claim for refund or adjustment of credit was made long after the earlier protest had ended and after the appellate classification order in favour of the assessee. The Tribunal held that directions of the appellate authority could not override the express limitation provisions governing refund and Modvat claims. The claim had to satisfy the requirements of the relevant statutory provisions, and the lapse of time was material. The plea based on continuing protest did not assist the assessee once the protest had been vacated and the claim was made beyond the permissible period.

Conclusion: The refund and Modvat credit claim was barred by limitation and could not be allowed merely because the assessee had earlier succeeded on classification.

Ratio Decidendi: A refund or Modvat credit claim must conform to the statutory limitation regime, and appellate directions cannot dispense with the mandatory time limits prescribed by law.

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