Section 11 A of the Central Excise Act, 1944 – Time bar Whether applicable in recovery of erroneous refund – Reg. - Central Excise - 647/38/2002

Circular No. 647/38/2002, Dt. 23/07/2002 Section 11 A of the Central Excise Act, 1944 - Time bar Whether applicable in recovery of erroneous refund - Reg. To All Chief Commissioners of Central Excise All Directors General All Commissioners of Central Excise All Commissioners of Central Excise (Appeals) All Commissioners of Customs The Comptroller Auditor General of India Chief Departmental Representative CEGAT Sir, I am directed to say that doubts were persisting as to whether the time bar u/s 11A of Central Excise Act, 1944 will be applicable in cases of consequential recovery of erroneous refund or not 2. The Hon'ble Supreme Court in Civil Appeal No.2178-79/2001 in the case of CCE, Shillong Vs. Woodcrafts Products Ltd., has held in its judgment dated 09-04-2002 [*2002(143) ELT247(SC)] that in case of consequential refund the time bar u/s.11A of Central Excise Act 1944 will not be applicable for recovery of refunded amount if the issue is finally decided in favour of the Department. 3. Board's Circular No.572/9/2001-CX dated 22-2-2001 may also be referred General Circular No. 7/2001 dated 28/2/2001 to in this context. 4. This may be brought to the notice of field formations. Tel.No. 309 2829 F.NO.4/3/2000-CX-1