Unspent PLA deposits remain the depositor's money until duty adjustment, so refund is not barred by limitation or unjust enrichment.

An unutilised balance in a PLA account-current is only an advance deposit for possible adjustment against duty and does not become duty until appropriated to the Government. On that basis, the bar of limitation under section 11B(1) and the doctrine of unjust enrichment did not apply, and the Department had no claim over the unspent amount. The procedural rules for withdrawal from the account-current and the Board's clarification both supported return of the balance to the depositor. The refund claim was therefore maintainable and the unspent PLA deposit was refundable to the assessee.

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Issues: Whether refund of the unspent balance lying in the assessee's PLA account-current was barred by limitation or controlled by section 11B(1), and whether the amount was liable to be refunded to the assessee.

Analysis: The balance in the PLA represented money deposited in advance for possible adjustment towards duty and was not duty already appropriated to the Government. In such a case, the Department had no claim over the unutilised balance, and the principles of limitation and unjust enrichment had no application. The procedural provision governing withdrawal from the account-current also contemplated permission for withdrawal by the proper authority. The Board's clarification supported refund of the unspent PLA balance to the depositor.

Conclusion: The refund claim was maintainable and the unspent PLA balance was refundable to the assessee; the rejection of refund was unsustainable.

Final Conclusion: The appeal succeeded and the assessee was held entitled to consequential refund of the unutilised PLA deposit.

Ratio Decidendi: An unutilised deposit lying in a PLA account-current remains the depositor's money until appropriated towards duty, and refund of such balance is not governed by the bar of limitation or unjust enrichment applicable to duty refunds.

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