Contours around Duty Paid Under Protest

The doctrine of payment under protest continues to play a significant role in GST litigation even though the Central Goods and Services Tax Act, 2017 does not expressly recognise it. In modern GST enforcement, taxpayers are frequently asked to deposit amounts during audits and investigations before any formal determination of liability. The central legal question therefore becomes whether such payments constitute voluntary tax discharge or merely deposits made pending adjudication. This distinction has wide implications for refund eligibility, limitation under Section 54, application of unjust enrichment, and entitlement to interest. Courts have increasingly emphasized that tax cannot be collected without authority of law and that investigation-stage recoveries must respect procedural safeguards. Properly documenting payments as being made under protest ensures that taxpayers preserve their right to contest the demand and seek refund if the liability is ultimately found to be unsustainable. Understanding the legal character of investigation-stage payments has therefore become an essential component of GST risk management, litigation strategy, and constitutional compliance.