Refund limitation for re-exported duty-paid goods runs from crossing the Indian frontier, not domestic clearance.

Refund of excise duty on goods first cleared in the domestic tariff area, then brought back under D-3 intimation and re-exported, was held admissible on merits because the goods had ultimately been exported after suffering duty. For limitation under Section 11B of the Central Excise Act, 1944, the relevant date was the date the goods crossed the Indian frontiers, not the earlier domestic-clearance date. A contrary view applied by the lower authority was treated as no longer good law after being held per incuriam. The refund claim was therefore within limitation and allowed, with consequential relief.

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Issues: Whether refund of duty was admissible on goods initially cleared in the domestic tariff area, later brought back under D-3 intimation and ultimately exported, and whether the refund claim was barred by limitation.

Analysis: The goods had suffered excise duty at the time of domestic clearance and were subsequently returned to the factory under D-3 intimation before being exported. On these facts, the refund was held to be allowable on merits. For limitation, the relevant date was taken as the date on which the goods crossed the Indian frontiers under Section 11B of the Central Excise Act, 1944, and not the earlier domestic-clearance date. The contrary view relied upon by the lower authority was treated as no longer good law in light of the later decision holding it per incuriam.

Conclusion: The refund claim was within limitation and was admissible in favour of the assessee.

Final Conclusion: The rejection of the refund claim was set aside and the appeal succeeded with consequential relief.

Ratio Decidendi: For exported goods that had earlier suffered duty and were returned to the factory before re-export, the relevant date for limitation under Section 11B is the date of crossing the Indian frontier, and a contrary view that is later held per incuriam cannot sustain rejection of the refund claim.

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