Appeal Allowed for Refund: Payment Under Protest

The Tribunal allowed the appeal in favor of the appellant, holding that the payment made was under protest, entitling them to a refund. The impugned order demanding Central Excise Duty on debit notes was set aside, and the appellant's contention that duty paid under protest is not time-barred was upheld.

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Issues:
1. Central Excise Duty demand on debit notes issued by the appellant.
2. Admissibility of refund of amount paid by the appellant before issuance of show cause notice (S.C.N).

Issue 1: Central Excise Duty demand on debit notes
The appellant, a manufacturer of excisable goods, issued debit notes to customers for transport charges paid on their behalf. The preventive officers alleged the debit notes were for collecting excess value of goods sold and demanded Central Excise Duty on the amount. The appellant clarified that the amount represented transport charges paid for customers, but the officers demanded payment. The Assistant Commissioner issued a show cause notice (S.C.N) for duty payment and penalty under the Central Excise Act, which was confirmed initially but later set aside by the Commissioner (Appeals) for re-adjudication.

Issue 2: Admissibility of refund of amount paid by the appellant
The appellant paid an amount under protest before the issuance of the S.C.N, which was later dropped by the Assistant Commissioner. The authorities rejected the refund claim citing non-payment under protest. The appellant argued that the payment was involuntary and forced by the preventive officers, invoking a Supreme Court judgment stating duty paid under protest is not time-barred. The appellant's contention was supported by the Supreme Court's observation that duty paid in cases ending in court orders is deemed paid under protest, exempting it from time limitations.

In conclusion, the Tribunal held that the payment made by the appellant was under protest, entitling them to a refund. The impugned order was set aside, and the appeal was allowed in favor of the appellant.

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