Limitation for incentive refund claims runs from approval of base clearance, not from duty payment, under the exemption scheme.

Refund claims under the excess production incentive notification were held not to be barred by limitation merely because they were filed more than six months after duty payment. The Tribunal reasoned that admissible refund could not be quantified, and excess clearances could not be identified, until approval of the base clearance under the scheme. Limitation under Rule 11 was therefore computed from the date of approval of the base clearance, not from the date of duty payment. The Revenue's reliance on authorities governing ordinary refund claims was rejected, and the assessee's limitation plea was accepted.

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Issues: Whether the refund claims arising under Notification No. 198/76-C.E. were barred by limitation under Rule 11 of the Central Excise Rules, 1944, where the claims were filed within six months of approval of the base clearance but beyond six months from payment of duty.

Analysis: The refund claims related to excess production incentive under the exemption notification. The Tribunal held that, in such a scheme, the assessee could not quantify the admissible refund or know when excess clearances would begin until the base clearance was approved. The period of limitation was therefore taken to run from the date of approval of the base clearance and not from the date of payment of duty. The Tribunal followed its earlier decisions supporting this view and rejected the Revenue's reliance on authorities dealing with ordinary refund claims.

Conclusion: The refund claims were not held to be time-barred on the basis urged by the Revenue; the assessee's position on limitation was accepted, and the Revenue appeals were dismissed.

Final Conclusion: Refund under the production incentive notification was treated as arising only after approval of the base clearance, so the relevant limitation period was computed from that approval and the appeals failed.

Ratio Decidendi: For refund claims under the excess production incentive scheme, limitation begins from the date of approval of the base clearance, not from the date of payment of duty.

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