Time-limit for making the application for refund of duty :
1. Under Section 11B, the application for refund has to be made within one year from the relevant date.
2. The meaning of the term “relevant date” is set out in the Explanation (B) to section 11B.
3. The relevant date in the various cases is as follows :
(a) in the case of goods exported out of India where a refund of excise duty paid is available in respect of the goods themselves or, as the case may be, the excisable materials used in the manufacture of such goods,
(i) if the goods are exported by sea or air, the date on which the ship or the aircraft in which such goods are loaded, leaves India, or,
(ii) if the goods are exported by land, the date on which such goods pass the frontier, or
(iii) if the goods are exported by post, the date of despatch of goods by the Post Office concerned to a place outside India;
(b) in the case of goods returned for being remade, refined, reconditioned or subjected to any other similar process, in any factory, the date of entry into the factory for the purposes aforesaid;
(c) in the case of goods to which banderols are required to be affixed if removed for home consumption but not so required when exported outside India, if returned to a factory after having been removed from such factory for export out of India, the date of entry into the factory;
(d) in the case where a manufacturer is required to pay a sum, for a certain period, on the basis of the rate fixed by the Central Government by notification in the Official Gazette in full discharge of his liability for the duty leviable on his production of certain goods, if after the manufacturer has made the payment on the basis of such rate for any period but before the expiry of that period such rate is reduced, the date of such reduction;
(e) in the case of a person, other than the manufacturer, the date of purchase of the goods by such person;
(f) in case of goods which are exempt from payment of duty by a special order under section 5A(2), the date of issue of such order;
(g) in case of provisional assessment, the date of adjustment of duty after final assessment;
(h) in case where the duty becomes refundable as a consequence of judgement, decree, order or direction of appellate authority, Appellate Tribunal or any Court, the date of such judgement, decree, order or direction;
(i) in any other case, the date of payment of duty.
4. The aforesaid period of limitation will not apply if duty is paid under protest.
Unless the duty is paid under protest, the application for refund claim should be filed within one year from the relevant date. In this context, the Supreme Court in the case of CCE Vs Flock (India) Pvt. Ltd., 2000 (120) ELT 285 (S.C.) has held that where the assessee has not challenged the adjudication order in time despite being appealable, such order cannot be questioned by filing refund claim after the time limit on the ground that adjudicating authority has committed an error in passing earlier order.
However, the limitation period contained in section 11B is not applicable in case of refund pre – deposit made during the course of investigation.