Rejection of refund claim - time barred

[kiran kujur]

I have debited E.cess from the amount deposited under BED head of Account in 2007 . later in 2008,audit team objected and advised to deposit the duty amount afresh. accordingly i have deposited the said amount in E.Cess head of account and applied for refund of E.Cess payment made in 2007. The department rejected the refund application on ground of applicability of time bar u/s 11B of Central Excise Act, 1944. pl suggest me is it a case of refund of duty u/s 11B and is limitation of one year period is applicable. Relevant case laws may kindly be referred.

AI Summary

Refund Claim Rejected Due to Time Bar Under Section 11B of Central Excise Act; Argued as Deposit, Not Duty Payment. A query was raised regarding the rejection of a refund claim for an amount debited under the Basic Excise Duty (BED) head in 2007, which was later objected to by an audit team in 2008. The department rejected the refund application citing the time bar under Section 11B of the Central Excise Act, 1944. Respondents advised that the earlier action was not incorrect and suggested treating the deposit as made under protest. They recommended filing a claim and arguing that the amount was a deposit, not a duty payment, thus not subject to the one-year limitation period.