Refund limitation for duty paid under protest can raise a referable question of law when the adjudication order becomes final.

Duty paid under protest pursuant to an unappealed adjudication order that has attained finality may still raise a referable question of law on refund limitation and the interpretation of the governing refund rule. The text notes that the Department argued the protest lost significance once the appeal period expired, while the contrary position was that the issue turned on the correct construction of the proviso to Rule 223B of the Central Excise Rules. On that basis, reference jurisdiction under Section 35G(1) of the Central Excise Act, 1944 was invoked and the Revenue's reference application was accepted, with the question referred to the jurisdictional High Court.

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Issues: Whether a refund claim for duty paid under protest in pursuance of an appealable adjudication order is barred by limitation when the assessee did not challenge that order in appeal and it attained finality, and whether such question of law justified reference to the High Court.

Analysis: The duty had been paid under protest pursuant to orders-in-original which were not appealed against, so the Department contended that the protest lost significance once the appeal period expired and that refund could not be claimed merely because a similar issue had been decided in the assessee's favour for a different period. The order records that the correct interpretation of the proviso to Rule 223B of the Central Excise Rules gave rise to a question of law and that there was no authoritative pronouncement on the point. On that basis, the reference jurisdiction was invoked under Section 35G(1) of the Central Excise Act, 1944.

Conclusion: The question of law was referred to the jurisdictional High Court, and the Revenue's reference application was accepted.

Final Conclusion: The matter was not decided on the underlying refund entitlement, but on the existence of a referable question of law concerning limitation and refund of duty paid under protest after the adjudication order had become final.

Ratio Decidendi: Where duty is paid under protest pursuant to an unappealed adjudication order that has attained finality, the effect of limitation on refund and the interpretation of the governing refund rule can constitute a referable question of law under the reference provision.

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