The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), the Ahmedabad Bench in the case Sun Pharmaceutical Industries Ltd Vs C.C.E. & S.T observed and stated that the limitation period is not applicable on personal ledger accounts (PLA).
The bench comprising of Justice Ramesh Nair (Judicial Member) has observed that in the case of personal ledger accounts (PLA) balance that it is not deposited as a duty but it is deposited as an advance towards the duty. It is observed that 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 and is not a duty. Moreover, Section 11B is not applicable.
The issue raised by the applicant was weather the applicant is entitled to a refund of the unspent balance of personal ledger accounts (PLA), with effect from 01.07.2017, due to change in the regime of taxation from central excise to GST. The Another issue raised by the appellant was weather 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.
It was observed that 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 from the date of payment, within one year.
Further, it was observed by the CESTAT that the appellant is entitled to the refund of PLA balance and the limitation provided under Section 11B is not applicable.
DGM Mahesh Tailor, the Counsel appearing for the Appellant.
