Limitation for excise refund runs from the date duty is paid before removal, making a later claim time-barred.

Where duty was debited before removal, that debit was treated as the date of payment of duty for computing limitation under Section 11B of the Central Excise Act, 1944. On the appellants' own treatment of the 17-11-1994 debit as duty payment, the refund limitation period ran from that date. A refund application filed in May 1996 was therefore beyond the prescribed period, and the claim was time-barred. The rejection of the refund claim was accordingly upheld.

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Issues: Whether the refund claim was barred by limitation under Section 11B of the Central Excise Act, 1944, and what was the relevant date for computing limitation.

Analysis: The appellants themselves had treated the debit made on 17-11-1994 as payment of duty in their reply and refund claim. On that basis, the debit was construed as the date of payment of duty. Applying the principle that where duty is paid before removal the date of payment is the critical date, the limitation period had to run from 17-11-1994. The refund application filed in May 1996 was beyond the statutory period prescribed for refund claims.

Conclusion: The refund claim was correctly held to be time-barred, and the rejection of the claim was upheld.

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