#Refund of Deposits

When tax authorities drop a demand entirely, deposits made under protest must be refunded without being barred by the one-year limitation under Section 11B. This ruling protects businesses from being penalized for complying with investigative demands while preserving their legal rights, setting a critical precedent for service tax and customs taxpayers across India.

Jharkhand HC rules that an allottee’s eight-year delay in challenging a public auction disentitles them to a writ of mandamus, even if the auction lacked due process. The Corporation must refund deposits with interest, but third-party rights and possession remain protected under the Doctrine of Laches.