All the time the channel condition won't be worst. So after maximum HARQ retransmissions also, decoding of Mac pdu (tb) fails, ARQ retransmission will be done in RLC in AM mode. In next ARQ retransmission ( again maximum HARQ retransmissions occurs) ,the MAC pdu may be decoded successfully. If max ARQ retransmissions occur Packet will be lost at RLC level.