Refund limitation under Customs Act applied from duty payment date where export was not completed and special refund conditions failed.

Where export was not completed and the shipping bill was cancelled, the statutory conditions for refund of export cess under Section 26 of the Customs Act, 1962 were not satisfied. The claim therefore fell to be governed by the general refund mechanism under Section 27, with limitation computed from the relevant date of payment of duty. Because the refund application was filed beyond six months from that date, it was time-barred. The appellate order was set aside and the original rejection of the refund claim was restored.

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Issues: Whether the refund claim for export cess was governed by Section 26 or Section 27 of the Customs Act, 1962, and whether the claim was barred by limitation.

Analysis: The goods were not exported out of India and the shipping bill was cancelled. The conditions for refund under Section 26 were therefore not satisfied. The claim accordingly fell under the general refund provision in Section 27, under which limitation had to be computed from the relevant date of payment of duty. As the refund application was filed beyond six months from that date, it was time-barred.

Conclusion: The refund claim was barred by limitation under Section 27 of the Customs Act, 1962, and the order of the Commissioner (Appeals) could not be sustained.

Final Conclusion: The appeal succeeded, the appellate order was overturned, and the original rejection of the refund claim was restored.

Ratio Decidendi: Where export is not completed and the statutory conditions for special refund under Section 26 are not met, a refund claim falls under the general limitation regime of Section 27, with limitation running from the relevant date of payment of duty.

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