Statutory limitation governs refund claims for tax paid by mistake when lodged before tax authorities, making late claims time-barred.

Refund of service tax paid by mistake and claimed before the departmental authorities remains subject to the statutory limitation under section 11B of the Central Excise Act, 1944 read with section 83 of the Finance Act, 1994. The Tribunal applied the settled principle that such refund claims cannot be pursued under general limitation rules outside the statutory refund framework. On the facts, the claim was filed beyond the prescribed period and was therefore time-barred, so the rejection of the refund claim was upheld.

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Issues: Whether the refund claim of service tax paid by mistake was governed by the limitation prescribed under section 11B of the Central Excise Act, 1944 read with section 83 of the Finance Act, 1994, and whether the claim was barred by time.

Analysis: The refund was sought before the departmental authorities on the footing that service tax had been paid though not legally payable. The Tribunal held that refund claims made before the Revenue are governed by the statutory limitation under section 11B and not by the general law of limitation. It relied on the settled principle that refund of tax paid under mistake is nevertheless subject to the statutory procedure and time limit where the claim is lodged before the tax authorities. On the facts, the claim was filed beyond the prescribed period and the authorities below had rejected it on that basis.

Conclusion: The limitation under section 11B applied and the refund claim was time-barred; the dismissal of the refund appeal was upheld in favour of Revenue.

Ratio Decidendi: A refund claim of tax paid by mistake, when made before the departmental authorities, remains subject to the statutory limitation prescribed for refund under section 11B and cannot be entertained dehors that limitation.

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