Refund of export cess paid under mistake upheld where honey was exempt and no real liability dispute existed.

Refund of export cess paid on honey was treated as maintainable where the cess was exempt under the notification and had been paid under a mistaken belief. The absence of a challenge to the shipping bills or assessment was not considered fatal because there was no real dispute on liability to pay the cess, and the earlier view relied on by the Revenue was distinguished on its facts. The rejection of the Revenue's objection was therefore upheld.

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Issues: Whether refund of export cess paid on export of honey could be denied merely because the shipping bills were not challenged, where the cess was not payable under the exemption notification and had been paid under a mistaken belief.

Analysis: The export cess on honey was exempted under the notification and the amount had been paid without objection by the Revenue. The claim was found to be one arising from payment under mistake, and the absence of a challenge to the assessment was held not to be fatal in the absence of any real dispute between the parties. The earlier view relied upon by the Revenue was distinguished on the basis that the facts disclosed no contest over the liability to pay the cess.

Conclusion: The refund claim was maintainable and the rejection of the Revenue's objection was upheld.

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