Transitional Refunds under GST override excise limitation; refund permitted where credit unavailable and procedural performance was impossible.

Transitional credits under the CGST Act were held to constitute vested rights and refund claims arising from the CGST transitional provisions cannot be defeated by the limitation bar in central excise law. The tribunal reasoned that where CVD/SAD credit is not available under GST but existed pre-GST, Section 142 provides an independent refund remedy and procedural time limits under Section 11B of the Central Excise Act cannot be invoked where performance of the excise procedural mechanism was impossible after introduction of GST; refund directed with applicable interest under the refund interest provision.

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Issues: Whether the time limit under Section 11B of the Central Excise Act, 1944 bars refund of CVD/SAD paid after introduction of GST where credit was not available under GST and refund is claimed under the transitional provisions of the Central Goods and Services Tax Act, 2017 (Section 142).

Analysis: The Tribunal examined whether a limitation defence under Section 11B applies to refund claims arising from transitional provisions of the CGST Act. The Tribunal relied on prior precedents holding that transitional credits constitute a vested right and that refund claims flowing from the CGST Act's transitional provisions cannot be denied merely by invoking procedural limitation under Section 11B of the Central Excise Act, 1944. The Tribunal noted that where CVD/SAD credit is not available under the GST regime but was available under the erstwhile regime, the statutory scheme under Section 142 of the CGST Act recognises refund remedies. The Tribunal treated performance of statutory transitional mechanisms as impossible where duties were paid after 01.07.2017 and held that law does not compel performance of an impossibility; accordingly, time-bar under Section 11B cannot defeat a refund claim permitted by Section 142 of the CGST Act. The Tribunal further observed consistent decisions allowing such refunds and directed grant of refund with applicable interest under Section 11BB where appropriate.

Conclusion: The time limit prescribed under Section 11B of the Central Excise Act, 1944 is not applicable to refund claims arising under the transitional provisions of the Central Goods and Services Tax Act, 2017; the refund claim is allowed in favour of the assessee.

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