Refund limitation and protest payment under Central Excise law require Rule 233B compliance before limitation is excluded.

Refund limitation under Section 11B of the Central Excise Act is excluded only where duty is paid under protest in compliance with Rule 233B. A mere RG 23C Part-II endorsement and a later letter intimating debit and an intention to seek refund did not state that duty was paid under protest or disclose the grounds of protest; substantial compliance was not established. The refund claim was therefore held time-barred, and exclusion of limitation was denied.

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Issues: Whether the refund claim was barred by limitation under Section 11B of the Central Excise Act, 1944, or whether the duty was paid under protest so as to exclude the limitation period.

Analysis: The limitation period under Section 11B does not apply where duty is paid under protest, but Rule 233B of the Central Excise Rules, 1944 requires a protest letter to the proper officer stating the grounds for protest, along with the prescribed endorsements. The only contemporaneous act was an endorsement in RG 23C Part-II, while the letter sent later merely intimated debit and an intention to seek refund and did not state that the duty had been paid under protest or disclose any grounds. On the facts, this did not amount to substantial compliance with Rule 233B, and the protest letter requirement could not be dispensed with.

Conclusion: The refund claim was time-barred and the assessee was not entitled to exclusion of limitation on the plea of payment under protest.

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