Refund limitation under Rule 11 not attracted where duty was paid under protest before classification approval

Duty paid under protest was held not to attract limitation under erstwhile Rule 11 where the protest letter had been filed before approval of the classification list and the approving authority did not consider it while granting approval. The subsequent failure to appeal against the approval order did not invalidate the protest or deprive the assessee of the benefit of the saving clause. On that basis, the refund claim was treated as within time and limitation did not bar recovery.

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Issues: Whether the refund claim was barred by limitation in view of the protest letter filed before approval of the classification list.

Analysis: The protest letter was admittedly received before the classification list was approved, and the approving authority did not consider it while granting approval. In these circumstances, the protest could not be treated as having lost its validity merely because no appeal was filed against the approval order. The time limit under erstwhile Rule 11 was therefore not attracted, and the saving clause protected the refund claim.

Conclusion: The refund claim was not time-barred and the assessee succeeded on the question of limitation.

Ratio Decidendi: A refund claim is not hit by the limitation under erstwhile Rule 11 where duty was paid under protest and the protest was filed before approval of the classification list but was not considered by the approving authority.

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