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.

Yours faithfully,

Sd/-
(Suraksha Katiyar)
Under Secretary to the Govt. of India

Tel.No. 309 2829

F.NO.4/3/2000-CX-1

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