Revenue deposit paid under protest in a classification dispute was refundable with consequential interest, not duty under section 11B.

An amount paid under protest during a classification dispute retained the character of a revenue deposit because it was never accepted as duty, the demand for appropriation had already been set aside, and the record did not show a duty payment followed by a refund claim. On that basis, the refund was governed by the law applicable to deposits, along with consequential interest, and not by the duty-refund framework under section 11B. The operative result was that the refund relief in favour of the assessee was sustained and the Revenue's challenge failed.

---

---

Issues: Whether the amount paid by the assessee under protest was a revenue deposit and not duty, so as to make the refund and interest principles applicable, and whether the Revenue could still dispute the character of the amount and the refund relief granted.

Analysis: The amount was paid under protest in the course of a dispute on classification and was never accepted by the assessee as duty. The earlier show cause proceedings seeking appropriation of the deposited amount had already culminated in the Tribunal setting aside the demand, and the classification dispute stood concluded. The records also did not show payment of duty on the impugned goods followed by a refund claim of duty. The impugned order itself treated the amount as a refund of deposit and not as duty, and that finding had not been challenged. In these circumstances, the payment retained the character of a revenue deposit, and the legal principles governing refund of deposit and consequential interest applied. Section 11B was therefore not attracted to treat the amount as a duty refund in the manner suggested by Revenue.

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

Final Conclusion: The Revenue's challenge failed, and the refund order in favour of the assessee was sustained.

Ratio Decidendi: An amount paid under protest during an unresolved classification dispute, when not shown to be duty paid and when the appropriation demand stands set aside, retains the character of a revenue deposit and is governed by the law relating to refund of deposits and consequential interest.

---