Turnover-based exemption refund limitation runs from financial year-end, not each duty payment, where eligibility is determined annually.

A refund claim under a turnover-based exemption notification is not time-barred where entitlement depends on whether the assessee crossed the prescribed annual turnover limit, because that fact can be determined only on closure of the financial year. Limitation is therefore computed from the expiry of that year, not from each individual duty payment. The distinction between a small-scale exemption and a concessional notification was treated as immaterial for this purpose, since the exemption itself turned on annual turnover. The refund was consequently allowed.

---

---

Issues: Whether a refund claim arising under an exemption notification linked to annual turnover was barred by limitation when filed after the end of the financial year.

Analysis: The exemption under Notification No. 43/82-C.E. depended on whether the assessee exceeded the prescribed turnover limit during the current financial year. That fact could be ascertained only on the close of the financial year. The period of limitation, therefore, was to be computed from the expiry of that year and not from each date of duty payment. The distinction between a small-scale exemption and a concessional notification was not material for this purpose where the exemption itself was turnover-based.

Conclusion: The refund claim was not barred by limitation and the assessee was entitled to the refund.

---