Pre-notice excise deposit cannot be refunded while confirmed duty demand remains operative without stay or reversal.

A pre-notice deposit made during central excise proceedings can be appropriated towards the duty demand once that demand has been adjudicated, confirmed and upheld. The mere fact that the deposit was made before the show cause notice does not create an immediate right to refund where the confirmed demand remains operative. Pending challenge before a higher court, without any stay of the Tribunal's order, does not alter that position. The refund claim was therefore not maintainable at that stage and rejection of refund was justified.

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Issues: Whether the amount deposited before issuance of the show cause notice could be refunded when the duty demand had been confirmed and upheld.

Analysis: The amount was deposited during proceedings relating to alleged evasion of central excise duty. Although the deposit preceded the show cause notice, the ensuing demand was adjudicated, confirmed, and upheld by the Tribunal. In such circumstances, the deposited amount was liable to be appropriated towards the duty already affirmed. Pending challenge before a higher court did not create an right to refund, especially when there was no stay of the Tribunal's order.

Conclusion: The refund claim was not maintainable at that stage and the rejection of refund was justified. The appeal was dismissed.

Ratio Decidendi: Where a pre-notice deposit is made during excise proceedings and the corresponding duty demand stands confirmed, the assessee cannot claim refund of the deposit until the confirmed demand is set aside.

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