Order date – 23 June 2022

Facts – 

• The appellant, Sun Pharmaceuticals Industries Ltd, applied for refund of unspent balance of Personal Ledger Account (PLA) due to change in taxation regime from central excise to GST with effect from 01.07.2017.
• The Commissioner (Appeal) rejected the refund claim on the ground that the limitation under 11B is applicable according to which the claimant should have filed the refund within the one year from date of payment.
• Hence the appellant filed an appeal.

Issue – 

• Whether the appellant is entitled for refund of unspent balance of Personal Ledger Account (PLA) and whether the limitation as provided under section 11 B is applicable ?

Order – 

• The Tribunal observed that the PLA amount takes the color of excise duty only when it is utilized for payment of duty on clearance of excisable goods. The unspent balance of PLA is only advance, and not duty therefore, Section 11B is not applicable.
• Reliance was placed on the case of Navdeep Packaging Industries – 2007 (TRI. MUMBAI) wherein it was held that since there is a specific provision for refund of PLA balance under Rule 9(1A) and 173G(1A), such refund would be squarely covered under the Rules and not under Section 11B of the Central Excise Act. 1944.
• Therefore in light of the above observation, the Tribunal allowed the appeal.