Finality of no-duty finding supports refund of duty reversed under protest despite notice omission

Where an adjudication order has finally held that no duty is leviable, refund of duty reversed under protest in the same levy dispute cannot be denied merely because the amount was not separately mentioned in the show cause notice. The finality of the earlier order was determinative of the levy issue, so the assessee's refund claim was maintainable and the departmental challenge failed.

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Issues: Whether the assessee was entitled to refund of the amount reversed under protest when the earlier adjudication order holding that no duty was leviable had not been challenged, even though the amount was not specifically included in the show cause notice.

Analysis: The issue of demand of duty pursuant to the Board circular had already been decided in the assessee's favour by the adjudicating authority, and that order had attained finality because the department did not challenge it. The refund amount represented a reversal made under protest in the same dispute concerning levy on molasses used in manufacture of rectified spirit. Once the adjudicating authority had held that no duty was leviable, the assessee's entitlement to refund could not be defeated merely because the amount was not separately reflected in the show cause notice. The appellate authority was therefore correct in treating the earlier final order as determinative of the levy issue.

Conclusion: The refund was allowable and the departmental appeal was not sustainable.

Ratio Decidendi: Where an adjudication order holding that no duty is leviable has attained finality, a refund of duty reversed under protest in the same dispute cannot be denied on the ground that the amount was not separately included in the show cause notice.

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