The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the limitation period is not applicable on personal ledger accounts (PLA).
The bench of Ramesh Nair (Judicial Member) has observed that in the case of PLA balance, it is not deposited as a duty but it is deposited as an advance towards the duty. The PLA amount takes the colour of excise duty only when it is utilised for payment of duty on clearance of excisable goods. The unspent balance of the PLA is only an advance, not a duty. Therefore, Section 11B is not applicable.
The appellant has raised the issue of whether the appellant is entitled to a refund of the unspent balance of PLA due to the change in the taxation regime from central excise to GST with effect from 01.07.2017. Yet another issue raised was whether the limitation as provided under section 11 B of the Central Excise Act, 1944 is applicable in the case of a refund of unspent PLA Balance.
The Commissioner (Appeals) rejected the refund claim on the ground that the limitation under Section 11B is applicable according to which the claimant should have filed the refund within one year from the date of payment.
The CESTAT observed that the appellant is entitled to the refund of PLA balance and the limitation provided under Section 11B is not applicable.
Case Title: Sun Pharmaceutical Industries Ltd Vs C.C.E. & S.T.
Citation: Excise Appeal No. 10105 of 2020
Counsel For Appellant: DGM Mahesh Tailor
Counsel For Respondent: Assistant Commissioner (AR) Dinesh Prithiani