Claim for refund of duty and interest, if any, paid on such duty
Section 11B of the Central Excise Act, 1944 deals with claim for refund of duty and interest, if any, paid on such duty. Any person claiming refund of any [duty of excise and interest, if any, paid on such duty] may make an application for refund of such [duty and interest, if any, paid on such duty] to the Assistant [Principal Commissioner of Central Excise or Commissioner of Central Excise] [or Deputy [Principal Com The Act came into force on 28 Feb 1944.
1[11B. Claim for refund of 2[duty and interest, if any, paid on such duty].-- (1) Any person claiming refund of any 3[duty of excise and interest, if any, paid on such duty] may make an application for refund of such 2[duty and interest, if any, paid on such duty] to the Assistant 4[Principal Commissioner of Central Excise or Commissioner of Central Excise] 5[or Deputy 6[Principal Commissioner of Central Excise or Commissioner of Central Excise] before the expiry of 7[two years] 8[from the relevant date] 9[in such form 10[and manner]] as may be prescribed and the application shall be accompanied by such documentary or other evidence (including the documents referred to in Section 12-A) as the applicant may furnish to establish that the amount of 3[duty of excise and interest, if any, paid on such duty] in relation to which such refund is claimed was collected from, or paid by, him and the incidence of such 2[duty and interest, if any, paid on such duty had not been passed on by him to any other person:
Provided that where an application for refund has been made before the commencement of the Central Excises and Customs Laws (Amendment) Act, 1991, such application shall be deemed to have been made under this sub-section as amended by the said Act and the same shall be dealt with in accordance with the provisions of sub-section (2) as substituted by that Act:]
12[Provided further that] the limitation of 7[two years] shall not apply where any 2[duty and interest, if any, paid on such duty] has been paid under protest.
13[* * *]
14[(2) If, on receipt of any such application, the Assistant 6[Principal Commissioner of Central Excise or Commissioner of Central Excise[ 15[or Deputy 6[Principal Commissioner of Central Excise or Commissioner of Central Excise]] is satisfied that the whole or any part of the 3[duty of excise and interest, if any, paid on such duty] paid by the applicant is refundable, he may make an order accordingly and the amount so determined shall be credited to the Fund:
Provided that the amount of 3[duty of excise and interest, if any, paid on such duty] as determined by the Assistant 6[Principal Commissioner of Central Excise or Commissioner of Central Excisec]
15[or Deputy 6[Principal Commissioner of Central Excise or Commissioner of Central Excise]] under the foregoing provisions of this sub-section shall, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to--
(a) rebate of duty of excise on excisable goods exported out of India or on excisable materials used in the manufacture of goods which are exported out of India;
(b) unspent advance deposits lying in balance in the applicant's account current maintained with the 16[Principal Commissioner of Central Excise or Commissioner of Central Excise];
(c) refund of credit of duty paid on excisable goods used as inputs in accordance with the rules made, or any notification issued, under this Act;
(d) the 17[duty of excise and interest, if any paid on such duty paid by the manufacturer, if he had not passed on the incidence of such 18[duty and interest, if any, paid on such duty] to any other person;
(e) the 17[duty of excise and interest, if any paid on such duty borne by the buyer, if he had not passed on the incidence of such 18[duty and interest, if any, paid on such duty to any other person;
(f) the 17[duty of excise and interest, if any paid on such duty borne by any other such class of applicants as the Central Government may, by notification in the Official Gazette, specify:
Provided further that no notification under clause (f) of the first proviso shall be issued unless in the opinion of the Central Government the incidence of 18[duty and interest, if any, paid on such duty] has not been passed on by the persons concerned to any other person.
(3) Notwithstanding anything to the contrary contained in any judgment, decree, order or direction of the Appellate Tribunal or any Court or in any other provision of this Act or the rules made thereunder or any other law for the time being in force, no refund shall be made except as provided in sub-section (2).
(4) Every notification under clause (f) of the first proviso to sub-section (2) shall be laid before each House of Parliament, if it is sitting, as soon as may be after the issue of the notification, and, if it is not sitting, within seven days of its reassembly, and the Central Government shall seek the approval of Parliament to the notification by a resolution moved within a period of fifteen days beginning with the day on which the notification is so laid before the House of the People and if Parliament makes any modification in the notification or directs that the notification should cease to have effect, the notification shall thereafter have effect only in such modified form or be of no effect, as the case may be, but without prejudice to the validity of anything previously done thereunder.
(5) For the removal of doubts, it is hereby declared that any notification issued under clause (f) of the first proviso to sub-section (2), including any such notification approved or modified under sub-section (4), may be rescinded by the Central Government at any time by notification in the Official Gazette.]
19[Explanation.-- For the purposes of this section,--
(A) "refund" includes rebate of duty of excise on excisable goods exported out of India or on excisable materials used in the manufacture of goods which are exported out of India;
(B) "relevant date" means,--
(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 a 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;
20[(e) in the case of a person, other than the manufacturer, the date of purchase of the goods by such person;]
21[(ea) in the case of goods which are exempt from payment of duty by a special order issued under sub-section (2) of Section 5-A, the date of issue of such order;]
22[(eb) in case where duty of excise is paid provisionally under this Act or the rules made thereunder, the date of adjustment of duty after the final assessment thereof;]
23[(ec) in case where the duty becomes refundable as a consequence of judgment, decree, order or direction of appellate authority, Appellate Tribunal or any court, the date of such judgment, decree, order or direction;]
(f) in any other case, the date of payment of duty.]
Section 11B, The Central Excise Act, 1944 (Act 1 of 1944).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Referred to by 8
- s. 11D Duties of excise collected from the buyer to be deposited with the Central Government
- s. 12C Consumer Welfare Fund
- Central Goods and Services Tax Act s. 142 Miscellaneous transitional provisions
- Finance Act s. 161 Amendment of notification issued under sub-section (4) of section 15 of the Oil Industry (Development) Act read with section 5A of the Central Excise Act
- Finance Act s. 109 Amendment of Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008
- Finance Act s. 110 Amendment of notification number GSR 95(E), dated 1st March, 2006 issued under section 5A of Central Excise Act
- Finance Act s. 111 Amendment of notification number GSR 163(E), dated 17th March, 2012 issued under section 5A of Central Excise Act
- Finance Act s. 104 Amendment of notification issued under section 5A of the Central Excise Act
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Commr. of Cen. Exc. Thane-iii vs Ballarpur Industries LTD
Court's Decision & Legal Precedent
The liability of the revenue to pay interest under Section 11BB of the Central Excise Act, 1944 commences from the date of expiry of three months from the date of receipt of application for refund under Section 11B(1) of the Act and not on the expiry of said period from the date on which the order of refund is made. Interest accrues automatically and is not dependent on the appellate authority's orders or the ultimate date of refund sanctioning.
On this section: Provisions relating to claim for refund of duty; establishes the procedure for filing refund applications and conditions for refund eligibility
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Commr. of Cen. Excise, Pune vs Garware Wall Ropes LTD
Court's Decision & Legal Precedent
The liability of the revenue to pay interest under Section 11BB of the Central Excise Act, 1944 commences from the date of expiry of three months from the date of receipt of application for refund under Section 11B(1) of the Act and not on the expiry of the said period from the date on which order of refund is made. This principle applies regardless of whether the refund order is made by the original administrative authority or by an appellate authority, because the Explanation to Section 11BB establishes that orders by appellate authorities are deemed to be orders under Section 11B(2) for purposes of determining whether interest is payable, but this deeming provision does not affect the commencement date of interest liability, which remains tied to the application date.
On this section: Defines the procedure for claiming and determining refunds of excise duty, establishing the application mechanism and criteria for refund eligibility
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Comnr. of Central Excise, Chennai vs T. V. S. Suzuki Ltd. , Hosur
Court's Decision & Legal Precedent
Refund claims made pursuant to finalization of provisional assessments under Rule 9B sub-rule (5) prior to 25 June 1999 are governed by the principle established in Mafatlal Industries Ltd., which excludes the application of time-bar restrictions in Sections 11A and 11B of the Central Excise Act, 1944. The subsequent amendment to sub-rule (5) by Notification No. 45/99-CE dated 25.6.1999, which introduced a proviso making such refunds subject to Section 11B procedures, is not retrospectively applicable to claims filed before the amendment came into force. Administrative delay in processing a pending refund claim does not defeat the substantive rights of an assessee accrued at the time of filing the claim.
On this section: Procedure for refund claims - Court held that for claims prior to 1999 amendment, Section 11B procedures do not govern the refund
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Sas Realtors Pvt. LTD vs Sri Maruti Electrical Enterprises
Court's Decision & Legal Precedent
The Limitation Act, 1963 applies to applications filed under Sections 7 and 9 of the Insolvency and Bankruptcy Code, 2016 from the Code's commencement on 01.12.2016. Time-barred debts cannot trigger the Corporate Insolvency Resolution Process. The expression 'debt due' in the Code refers only to debts that are not time-barred and are legally recoverable. Article 137 of the Limitation Act prescribes a three-year limitation period for applications under Sections 7 and 9, and applications filed beyond this period are barred unless delay is condoned under Section 5 of the Limitation Act.
On this section: Cited for principle that extended limitation period cannot revive dead claims that were time-barred before amendment.
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The Commissioner of Central Excise, Visakhapatnam vs Andhra Pradesh Paper Mills LTD
Court's Decision & Legal Precedent
A manufacturer who has paid excise duty is entitled to claim deduction from the sale price for trade discounts given to buyers, but is not entitled to claim refund of such duty if he has passed on the incidence of such duty to his buyers at the time of sale. The right to refund is not a matter of statutory right but is conditional upon the applicant establishing that the incidence of duty was not passed on to any other person, which includes verification up to the ultimate consumer. Where the burden of duty has been passed on from manufacturer to buyer and from buyer onwards, the manufacturer cannot claim refund as he would be unjustly enriched. The doctrine of unjust enrichment prevents any person from claiming duty refund from both ends - i.e., from his purchaser at one end and from the State on the ground that it has been collected from him contrary to law. If the ultimate consumer cannot be identified as the person who actually bore the duty burden, the unclaimed duty amount should be credited to the Consumer Welfare Fund for consumer benefit rather than refunded to the manufacturer who did not bear the actual burden.
On this section: Core provision establishing conditions for refund claims; requires applicant to prove duty was not passed on to any other person; refund to be credited to Consumer Welfare Fund unless specified exceptions apply
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Rajasthan Textile Mills vs U. O. I.
Court's Decision & Legal Precedent
In the scheme of the Central Excise Act, 1944 and the Central Excise Rules, 2002, a manufacturer/exporter is entitled to claim rebate of both the excise duty paid on the final excisable goods exported as well as the excise duty paid on materials used in the manufacture of such goods. The word 'OR' in Rule 18, which prima facie appears disjunctive, must be interpreted as 'AND' (conjunctive) to give effect to the manifest intention of the Legislature as evidenced by: (a) the consistent historical practice since the 1944 Rules of providing dual relief from duties on both final and intermediate products for exports; (b) the comparative scheme of Rules 18 and 19 which both aim to neutralize the burden of internal levies on exported goods; (c) the Government's own practice in exercising its rule-making power by issuing separate notifications for rebate on final goods and input materials, and prescribing forms that contemplate claiming both rebates; and (d) the principle of contemporanea expositio and executive construction, whereby the interpretation given by the rule-maker itself is ordinarily binding. To restrict rebate to only one duty would produce an anomalous and absurd result contrary to the purpose of export promotion and would constitute arbitrary discrimination.
On this section: Provides the statutory framework for claiming refund of duty of excise paid on goods. The Court analyzed this section to understand the legislature's intention regarding refunds for exported goods.
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Commr. of Cen. Excise vs International Auto LTD
Court's Decision & Legal Precedent
Under the amended scheme of Sections 11A, 11AB of the Central Excise Act, 1944 as amended by Act 14 of 2001 and Act 32 of 2003, interest under Section 11AB is leviable on differential excise duty arising from retrospective price revisions in supply contracts, regardless of whether such understatement of value and short-levy of duty at the time of removal was unintentional or committed without fraudulent means. The leviability of interest is premised on the principle that interest compensates the government for loss of revenue on delayed payment of duty. When goods are cleared at prices later revised upward retrospectively, the goods carried a higher value at the time of clearance and were cleared on short-payment of duty, and such short-payment must be treated as having occurred at the time of removal, not at the time supplementary invoices are issued.
On this section: Concerns claim for refund of duty by assessee; distinguished from recovery of duty under Section 11A; M.R.F. Limited case involved interpretation of this section regarding reduced prices and refund claims
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Mangalam Organics LTD vs Union of India
Court's Decision & Legal Precedent
When a statute vests a discretionary power in the Central Government to issue subordinate legislation (notification) in the nature of tax waiver, and the conditions for exercise of such power are satisfied, the Government is not obligated to exercise the power; the power remains discretionary. The issuance of such notification is a policy decision which is beyond the domain of courts to mandate through judicial review. A writ of mandamus cannot be issued to direct the Government to issue such a notification. The scope of judicial review of discretionary power relating to subordinate legislation is very limited and applies only where the exercise is arbitrary, with oblique end, extraneous purposes, without applying mind to relevant considerations, or lacking in relevant norms. A policy decision by Government that Section 11C notifications should be issued only when affecting large sections of trade, not individual assessees, is a valid policy consideration not open to judicial review. The courts cannot sit in appeal over policy decisions of the Executive relating to subordinate legislation.
On this section: Referenced in connection with refund procedures when Section 11C notification is issued. Court noted that Section 11C notification can lead to refunds under Section 11B procedures within 6 months of notification.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… learned Single Judge dismissing the writ petitions, upholding the order passed by the respondent rejecting the Digitally signed by Neetu Sachdeva Date: 2022.11.29 17:18:12 IST Reason: Signature Not Verified claim of the appellant for rebate on the ground that the claim was barred by time/limitation prescribed under Section 11B of the Central Excise Act, 1944 (hereinafter referred to as the 'Act'), the original writ petitioner/appellant herein has preferred the present appeal. 2. The facts leading to the present appeal in nutshell are as under: That the appellant herein – M/s Sansera Engineering Limited is a manufacturer of excisable …
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… By the impugned Judgment and Order, the High Court has refused to entertain the petitions under Article 226 of the Constitution and dismissed the same filed for refund of the excise duty in view of the provisional Section 11B of the Central Excise Act. So far as the challenge to the subsequent notification Nos. 16/2008-CE and 33/2008-CE is concerned, the High Court has not entered into the merits in view of its earlier decision which is the subject matter before this Court in the case of Civil Appeals @ SLP © Nos. 28194-28201 of 2010. …
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… By the impugned Judgment and Order, the High Court has refused to entertain the petitions under Article 226 of the Constitution and dismissed the same filed for refund of the excise duty in view of the provisional Section 11B of the Central Excise Act. So far as the challenge to the subsequent notification Nos. 16/2008-CE and 33/2008-CE is concerned, the High Court has not entered into the merits in view of its earlier decision which is the subject matter before this Court in the case of Civil Appeals @ SLP © Nos. 28194-28201 of 2010. …
Made under this section, and citing it
12 instruments name this provision in its title or its text without being made under it.
- Circular No. 1063/2/2018-CXCircular 2018
- Circular No. 1053/02/2017-CXCircular 2017
- Circular No. 1015/3/2016-CXCircular 2016
- Circular No. 1049/37/2016-CXCircular 2016
- No. 14/2016 - Central Excise (N.T)Notification 2016
- No. 18 /2016- Central Excise (N.T)Notification 2016
- No. 21/2016- Central Excise (N.T)Notification 2016
- Notification No. 22/2010- CE (N.T.)Notification 2010
- Notification No.11/2002-CE (N.T)Notification 2002
- circular no. 621/12/2002-CXCircular 2002
- Circular no. 518/14/2000-CXCircular 2000
- Notification No.35/2000-CE (N.T)Notification 2000
Questions about Section 11B
What have the courts held on Section 11B of the Central Excise Act?
Commr. of Cen. Exc. Thane-iii vs Ballarpur Industries LTD (21 Oct 2011) is the leading judgment on this section among those set out below: Provisions relating to claim for refund of duty; establishes the procedure for filing refund applications and conditions for refund eligibility. Another 7 judgments on this section are set out below, all of them from the Supreme Court. They run from 2003 to 2018.
How do I find court cases under Section 11B of the Central Excise Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Central Excise Act 1944 11B, section 11B Central Excise Act 1944, section 11B of the Central Excise Act. People searching for it also type 11b central excise act and 11bb of central excise act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 8 reported judgments on this section are set out on this page, beginning with Commr. of Cen. Exc. Thane-iii vs Ballarpur Industries LTD (21 Oct 2011).
What should I read with Section 11B of the Central Excise Act, and has it changed?
Its own text turns on section 5 (Remission of duty on goods found deficient in quantity), section 12 (Application of the provisions of Act 52 of 1962 to Central Excise Duties), so none of them can safely be read on its own. 8 other provisions in this corpus refer back to it. 12 instruments name it without being made under it, most recently Circular No. 1063/2/2018-CX (2018), then Circular No. 1053/02/2017-CX (2017).
When did Section 11B of the Central Excise Act come into force?
Section 11B of the Central Excise Act, cited as Central Excise Act 1944 11B, came into force on 28 Feb 1944, having been enacted on 24 Feb 1944. It is in force as at the date shown on this page.
Other sections of this Act
- 4. Valuation of excisable goods for purposes of charging of duty of excise1751 words
- 11A. Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded1442 words
- 35B. Appeals to the Appellate Tribunal1302 words
- 32F. Procedure on receipt of an application under Section 32-E1167 words
- 11AC. Penalty for short-levy or non-levy of duty in certain cases1093 words
- 35E. Powers of Committee of Principal Chief Commissioner of Central Excise or Chief Commissioners of Central Excise or Principal Commissioner of Central Excise or Commissioners of Central Excise to pass certain orders1020 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 18 Oct 2026. This page is not a substitute for legal advice.