Refund of redemption fine and penalty cannot be denied on a technical challan objection when payment is otherwise proved.

Refund of redemption fine and penalty cannot be refused on a purely technical objection when the underlying confiscation order has already been set aside with consequential relief and payment is otherwise proved. The Tribunal noted that the amounts were paid only to secure release of the goods, and a bank certificate evidenced payment even though the original TR 6 challan was not produced again. A refund claim treated under Section 11B of the Central Excise Act, 1944 could not be deferred further on that ground alone, and refund was directed on execution of an indemnity bond.

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Issues: Whether refund of the amount paid towards redemption fine and penalty could be denied on the ground of non-production of the original TR 6 challan, despite proof of payment and the earlier setting aside of the confiscation order with consequential relief.

Analysis: The Tribunal found that the earlier order confiscating the goods had already been set aside, and the appellant had made the payments only to secure release of the goods. The refund application, though treated under Section 11B of the Central Excise Act, 1944, was rejected merely for want of the original challan, even though a bank certificate specifically evidenced payment and the original challan was stated to have been produced earlier in connection with cancellation of the provisional bond. In these circumstances, there was no justification to defer refund further.

Conclusion: The refund could not be denied on the stated ground, and the appellant was entitled to refund on execution of an indemnity bond.

Final Conclusion: The impugned orders were set aside and the authorities were directed to refund the amount to the appellant.

Ratio Decidendi: When a confiscation order is set aside with consequential relief, refund cannot be refused on a purely technical objection if payment is otherwise proved.

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