Refund of duty deposited under protest was maintainable where no show cause notice or adjudication confirmed the demand.

Amounts deposited under protest pursuant to a departmental demand were treated as non-voluntary payments where no show cause notice had been issued and no adjudication had confirmed the demand. On that basis, the refund claim was maintainable, subject to the amended refund provisions and the principle stated in Mafatlal Industries. The decisive factor was the absence of the prescribed adjudicatory process, which meant the deposit could not be characterised as a voluntary discharge of duty. Refund was therefore admissible.

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Issues: Whether duty amounts deposited under protest, without issuance of a show cause notice or adjudication confirming the demand, were refundable to the assessee.

Analysis: The payment letter expressly recorded that the duty was being paid under protest and by monthly instalments towards the differential duty demanded by the Range Superintendent. No show cause notice had been issued and no adjudication had taken place confirming the demand. In these circumstances, the deposit could not be treated as a voluntary payment and the refund claim was maintainable, subject to the amended refund provisions and the governing principle stated in Mafatlal Industries.

Conclusion: The refund was admissible and the assessee succeeded on the issue.

Ratio Decidendi: Amounts deposited under protest pursuant to a departmental demand are refundable where the demand has not been confirmed through the prescribed adjudicatory process.

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