Batter Interference????

[michael15544]

Pro-Rules:
Runner on third base. Count is 3-0 to the batter. Ball 4 is issued to the batter. Umpire calls ball 4 and the batter throws his bat to the dugout while standing in the batters box. In the process of doing that the catcher pops up and throws the ball down to 3rd base to try to pick off the runner. Right after the catcher throws the ball, the ball hits the bat in mid air and the ball falls to the ground a few feet from the catcher. The batter runs to first and the runner on third comes home to score.

I've been told 2 different rulings,
ruling 1 is what i did,
dead ball,batter is out for interference and runner goes back to third.
ruling 2,
live ball. there was no intent on the batter interference so therefore it is a live ball