Refund on duty paid under protest upheld where manufacturing process fell within the exemption entry.

Refund could not be denied where duty had been paid under protest and the assessee's process of alkali or acid treatment, neutralization and bleaching fell within Sl. No. 244 of Notification No. 06/2002-CE, as amended. The factual findings recorded by the Commissioner (Appeals) were not shown to be incorrect, and no contrary material was produced to displace the conclusion on protest payment or exemption coverage. On that basis, the refund claim was sustained and the Revenue's challenge failed.

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Issues: Whether the refund claim was correctly rejected when the duty had been paid under protest and whether the manufacturing activity of the respondent fell within the scope of the exemption notification.

Analysis: The appeal turned on the validity of the Commissioner (Appeals)'s finding that the duty had been paid under protest and that the respondent's process of treatment with alkali or acid, neutralization and bleaching was covered by Sl. No. 244 of Notification No. 06/2002-CE dated 1-3-2002 as amended by Notification No. 37/2003-CE dated 30-4-2003. No contrary material was produced to show that these factual findings were incorrect. The Revenue also did not dispute the finding that the amount was paid under protest.

Conclusion: The refund could not be denied, and the order granting relief to the respondent was to the extent it allowed the claim.

Final Conclusion: The impugned order was upheld and the Revenue's challenge failed.

Ratio Decidendi: Where payment is made under protest and the assessee's process falls within the applicable exemption entry, refund cannot be refused in the absence of contrary evidence.

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