Payment under protest preserved refund rights under excise limitation rules despite no express protest provision.

A refund claim for duty paid under protest before 6-8-1977 was treated as not barred by Rule 11 of the Central Excise Rules, 1944, even though the Rules then contained no express provision recognising protest payments. The analysis states that payment under protest remained a valid protective course where levy was disputed, and such payment could not be equated with unconditional payment for automatic limitation purposes. On that basis, the refund claim was not defeated by limitation, and the assessee succeeded on the limitation issue.

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Issues: Whether a refund claim for duty paid under protest prior to 6-8-1977 was barred by limitation under Rule 11 of the Central Excise Rules, 1944, in the absence of any express provision recognising payment under protest.

Analysis: The duty had admittedly been paid under protest during the relevant period. The absence of an express provision in the Central Excise Rules, 1944, for payment under protest did not extinguish the taxpayer's right to make such a payment. Where a person disputes the levy, payment under protest remains a recognised protective course and cannot be treated as if it were an unconditional payment attracting the refund limitation automatically. On that basis, the refund claim was not to be defeated merely because the Rules did not expressly provide for protest payments.

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

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