Refund of protest payment under inapplicable Cenvat reversal rules treated as deposit, not excise duty.

A sum paid under protest toward clearance of exempted sulphuric acid under Rule 57CC / Rule 6 was refundable once the Supreme Court had already held, in the assessee's own case, that no liability arose because the provision was inapplicable to sulphuric acid produced only as a technological necessity and by-product. The payment was treated as a deposit rather than excise duty, so the inapplicability of Section 11B did not prevent restitution. The amount could not be retained by the Government without legal sanction, and the jurisdictional authority was directed to return the amount already paid.

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Issues: Whether the amount paid under Rule 57CC of the Central Excise Rules, 1944 and Rule 6 of the Cenvat Credit Rules, 2002 in respect of sulphuric acid, held not exigible by the Supreme Court in the assessee's own case, was refundable notwithstanding that it was not paid as excise duty and Section 11B of the Central Excise Act, 1944 was inapplicable.

Analysis: The assessee had paid the amount under protest toward clearance of exempted sulphuric acid. The Supreme Court had already held, in the assessee's own case, that Rule 57CC was not applicable because sulphuric acid emerged only as a technological necessity and as a by-product, so no amount was payable on that account. Once the liability itself was negated, the sum earlier paid could not be retained by the Government. The amount was treated as a deposit and not as excise duty, and therefore the absence of Section 11B applicability did not defeat restitution.

Conclusion: The amount paid under Rule 57CC / Rule 6 was refundable to the assessee.

Final Conclusion: The appeals succeeded and the jurisdictional authority was directed to return the amount already paid under protest.

Ratio Decidendi: A sum paid under a provision later held inapplicable in the assessee's own case, though not treated as excise duty, is refundable as a deposit and cannot be retained without legal sanction.

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