TaxTMI 
TaxTMI 
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.
Rejection of refund claim - time barred
27 Jan 2010 
4 Replies 
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Time bar on excise refunds: treat contested payment as deposit under protest to invoke longer limitation for recovery.
The refund claim was rejected as time barred under the one year duty refund limitation; the core issue is whether the sum represents a refund of duty or a refund of a deposit. Under Cenvat rules E.Cess cannot be used to pay BED (while BED credit may be used for E.Cess), affecting classification of the transaction. The recommended course is to treat the payment as a deposit made under protest, assert it was not appropriated by the department, file the refund claim and seek an appealable order, and argue that the longer limitation for deposits applies. (AI Summary)
The refund claim was rejected as time barred under the one year duty refund limitation; the core issue is whether the sum represents a refund of duty or a refund of a deposit. Under Cenvat rules E.Cess cannot be used to pay BED (while BED credit may be used for E.Cess), affecting classification of the transaction. The recommended course is to treat the payment as a deposit made under protest, assert it was not appropriated by the department, file the refund claim and seek an appealable order, and argue that the longer limitation for deposits applies. (AI Summary)