Revenue deposit under protest, not duty, attracts refund relief and applicable interest outside the strict refund framework.

An amount paid during a classification dispute was treated as a revenue deposit made under protest, not as voluntary payment of duty. Because the dispute had reached finality and the show cause notice and refund order both proceeded on the basis that the amount was refundable as a deposit, the Revenue could not later recharacterise it as duty. The refund therefore fell outside the strict framework of Section 11B, and the principles governing refund of deposits applied. Consequential refund relief, including interest as applicable, was available to the assessee.

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Issues: Whether the amount paid by the assessee was a revenue deposit made under protest or payment of duty, and whether refund of that amount carried interest and was outside the strict framework of Section 11B.

Analysis: The amount was treated as a deposit made under protest in the course of a dispute on classification and not as voluntary payment of duty. The classification dispute had attained finality, and the show cause notice itself proceeded on appropriation of the deposited amount. The refund order had also recorded that the amount was refundable as a deposit and not as duty. In these circumstances, the principles governing refund of deposit and interest on such refund applied, and the Revenue could not reopen the character of the amount at that stage.

Conclusion: The amount was a revenue deposit and not duty, and the assessee was entitled to consequential refund relief including interest as applicable.

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