Refund claims cannot be denied by reopening final protest findings or raising unjust enrichment for the first time

Where an appellate finding that duty was paid under protest attains finality, that issue cannot be reopened in later refund proceedings. A refund claim also cannot be resisted on a new unjust enrichment plea raised for the first time in appeal when it was not part of the earlier show cause notice or original adjudication. On those facts, the refund was not deniable on either ground and the departmental challenge failed.

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Issues: Whether the refund claim could be denied on the grounds that part of the duty was not paid under protest and that the assessee had not established that the incidence of duty had not been passed on.

Analysis: The refund had initially been rejected on the footing that the duty was not paid under protest, but that rejection was set aside in appeal and the Revenue did not challenge that finding. Once the appellate finding that the entire amount was paid under protest had attained finality, the Revenue could not reopen the same objection in subsequent proceedings or contend that a part of the amount was outside the protest letter. The objection based on unjust enrichment was also not available, as it was a new plea not raised in the earlier show cause notice or before the original adjudicating authority.

Conclusion: The refund could not be denied on either ground and the Revenue's appeal was without merit.

Final Conclusion: The assessee's refund claim stood confirmed and the departmental challenge failed.

Ratio Decidendi: A finding that duty was paid under protest, once it attains finality, cannot be reopened in later proceedings, and a new ground such as unjust enrichment cannot be introduced for the first time in appeal.

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