Pre-demand excise payment under protest escapes the ordinary refund limitation bar and remains refundable.

An excise amount deposited before any demand notice, and contemporaneously marked as payment under protest, was treated as refundable despite the ordinary limitation bar under section 11B. The payment was made during investigation towards a possible duty liability, the proceedings were later dropped, and the refund claim was filed promptly thereafter. On these facts, the protest endorsement was sufficient to take the claim outside the usual time limit applicable to voluntary payments, so refund could not be denied on limitation.

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Issues: Whether the amount deposited with the department prior to issuance of any demand notice, and endorsed and communicated as payment under protest, was refundable without being barred by limitation under section 11B.

Analysis: The amount was deposited in the course of investigation before any notice of demand was issued, and the assessee contemporaneously indicated that the payment was made under protest and provisionally towards any duty liability that might arise. The proceedings were later dropped, and the refund claim was filed promptly thereafter. A payment made under protest was treated as sufficient protest for the purpose of the applicable excise refund procedure, with the result that the limitation prescribed for refund claims did not govern the claim in the same manner as an ordinary voluntary payment.

Conclusion: The refund could not be denied on limitation. The amount was refundable, and the assessee succeeded on the issue.

Ratio Decidendi: A pre-demand excise payment made under protest is not subjected to the ordinary limitation bar for refund under section 11B.

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