Pre-deposit re-credit on successful appeal is allowed without Section 11B refund procedure or prior administrative permission.

Amounts deposited as a pre-deposit for pursuing an excise appeal are recoverable by re-credit once the appeal succeeds. The amount is treated as restitution of a pre-deposit under Section 35F of the Central Excise Act, 1944, not as an ordinary duty refund claim. Prior permission from the Assistant Commissioner is therefore not required before re-crediting the sum, and the refund procedure under Section 11B does not apply to such pre-deposits. The demand for prior administrative approval and a formal refund claim was rejected.

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Issues: Whether duty deposited as a pre-deposit for hearing of an appeal could be taken back by re-credit after the appeal was allowed, without prior permission of the Assistant Commissioner, and whether a refund claim under Section 11B of the Central Excise Act, 1944 was necessary.

Analysis: The amount deposited during the pendency of the appeal was in the nature of a pre-deposit under Section 35F of the Central Excise Act, 1944. Once the appellate authority allowed the appeal, the assessee became entitled to restitution of the amount so deposited. The requirement of seeking prior permission before taking re-credit was held unwarranted, because the amount was not a duty refund claim in the ordinary sense but a return of a pre-deposit made only to pursue the appeal. Section 11B of the Central Excise Act, 1944 was held inapplicable to such pre-deposit.

Conclusion: Re-credit of the pre-deposited amount could not be denied for want of prior permission, and the assessee was entitled to the amount upon success in appeal. The demand of prior refund procedure was rejected.

Ratio Decidendi: Amounts deposited as pre-deposit for prosecuting an appeal are refundable or re-creditable on success in appeal without resort to Section 11B of the Central Excise Act, 1944 or prior administrative permission.

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