Consequential refund under Section 11B(3) follows success in appeal and is not barred by protest formalities.

Where a reclassification appeal succeeds and the duty payable is reduced, the differential duty becomes refundable as a consequential relief under Section 11B(3), without requiring a fresh refund claim. The Court treated the refund as flowing directly from the appellate order and held that the refund could not be denied for alleged non-compliance with Rule 233B or for failure to satisfy the protest requirement under the proviso to Section 11B(1). The broader question of whether the payment was made under protest was left unnecessary for decision. The refund rejection was set aside and consequential refund with interest directed.

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Issues: Whether the assessee was entitled to refund of the differential duty as consequential relief after succeeding in the classification dispute, and whether the larger question regarding compliance with Rule 233B as a condition precedent to the proviso to Section 11B(1) required determination.

Analysis: The assessee succeeded in the reclassification dispute before the appellate authority, by which the duty payable was held to be at 15%. Once that result followed, the refund of the differential duty became due as a consequence of the appellate order. In such a case, refund is governed by Section 11B(3), under which the Assistant Collector may refund the amount without a fresh claim. The Court therefore found it unnecessary to decide the broader controversy on whether payment was under protest in the manner required by Rule 233B or whether the proviso to Section 11B(1) applied.

Conclusion: The assessee was entitled to refund under Section 11B(3), and the refund could not be denied on the ground of non-compliance with Rule 233B.

Final Conclusion: The impugned order rejecting the refund was set aside, and consequential refund with interest was directed.

Ratio Decidendi: Where refund becomes due as a direct consequence of success in appeal or revision, it is recoverable under the statutory provision for consequential refund and does not depend on a fresh refund claim or on compliance with protest formalities applicable to ordinary refund claims.

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