Provisional assessment refund claims: limitation runs from duty payment, and no refund lies without proved excess duty.

In refund claims arising from provisional assessments, limitation under Section 11B of the Central Excise Act, 1944 ran from the date of payment of duty for the relevant period, and not from finalisation of assessment; the contrary view was rejected. The assessee also failed on merits because final assessment and account reconciliation showed a deficit, later made good by the assessee, so the amount paid could not be treated as excess duty refundable from the department. The appeals therefore could not succeed, as no refundable excess was established after final assessment and the limitation ruling did not assist the assessee.

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Issues: (i) Whether refund claims arising from provisional assessments were barred by limitation under Section 11B of the Central Excise Act, 1944, and whether the limitation ran from the date of payment of duty or from finalisation of assessment. (ii) Whether the assessee was entitled to refund of the alleged excess duty after final assessment was made and the accounts were reconciled.

Issue (i): Whether refund claims arising from provisional assessments were barred by limitation under Section 11B of the Central Excise Act, 1944, and whether the limitation ran from the date of payment of duty or from finalisation of assessment.

Analysis: For the relevant period, Section 11B fixed the limitation with reference to the date of payment of duty. Subordinate provisions under the Central Excise Rules could not override the statutory mandate. The view that limitation commenced only on finalisation of assessment was rejected.

Conclusion: The refund claims were governed by limitation from the date of payment of duty, not from the date of final assessment.

Issue (ii): Whether the assessee was entitled to refund of the alleged excess duty after final assessment was made and the accounts were reconciled.

Analysis: The final assessment showed a deficit for the relevant period, which was accepted and made good by the assessee. On that footing, the amount paid could not be treated as excess duty actually due from the department.

Conclusion: No refund was payable to the assessee.

Final Conclusion: The appeals were not sustainable because the claims did not establish a refundable excess after finalisation of assessment, and the limitation ruling did not assist the assessee.

Ratio Decidendi: In refund matters arising from provisional assessments, limitation under Section 11B runs from the date of payment of duty for the relevant period, and refund is unavailable where final assessment shows no excess duty was ultimately paid.

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