The CESTAT held that the amounts deposited by the appellant on...

The CESTAT held that the amounts deposited by the appellant on the direction of departmental officers for detected shortages cannot be considered voluntary deposits. As the appellant contested the demand and succeeded in getting it set aside, the amounts paid were under protest and not voluntary. The deposits did not acquire the character of duty until clearance from the premises. Section 11B of the Central Excise Act, 1944 concerning limitation for refund of duty is not applicable to refund of such deposits paid under protest during an ongoing dispute. The doctrine of unjust enrichment is also inapplicable. The refund claim was allowed as there were no reasonable grounds for rejection.

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