Automatic refund under compounded levy scheme overrides general refund limitation for excess duty payments.

Rule 92B of the Central Excise Rules required recalculation of duty from the date of alteration in rate and mandated refund of any excess already paid under the compounded levy scheme. Because that special provision contemplated automatic repayment of the balance without a formal claim, the general six-month limitation for refund claims under Rule 11 did not govern such excess payments. The excess duty was therefore refundable to the assessee without compliance with the ordinary refund-claim timeline.

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Issues: Whether the limitation prescribed under Rule 11 of the Central Excise Rules applied to a refund claim arising from excess payment under the compounded levy scheme governed by Rule 92B of the Central Excise Rules.

Analysis: Rule 92B specifically provided that where there is an alteration in the rate of duty, the amount payable shall be recalculated from the date of alteration and, if the recalculated amount was less than the sum already paid, the balance shall be refunded to the manufacturer. The provision used mandatory language and contemplated refund of the excess amount without requiring the assessee to make a claim. In that situation, the general requirement in Rule 11 that a refund claim be filed within six months from the date of payment did not govern excess payments made under the compounded levy scheme.

Conclusion: The limitation under Rule 11 did not apply to refunds of excess compounded levy under Rule 92B, and the refund was payable to the assessee without a formal claim.

Ratio Decidendi: Where a special provision mandates automatic refund of excess duty on recalculation of compounded levy, the general refund limitation applicable to ordinary refund claims does not apply.

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