Refund claim cannot be denied while the core valuation dispute remains pending final adjudication.

A refund claim for duty paid by a job worker could not be finally rejected merely because the underlying valuation dispute remained pending. Since the proper basis of duty liability-cost basis or sale value basis-had not yet been determined in the show cause notice proceedings, the refund issue was premature. The claim therefore had to be reconsidered after final adjudication of the valuation notice, rather than being denied on that procedural ground.

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Issues: Whether the refund claim for duty paid by a job worker could be rejected when the show cause notice on the basis of valuation was still pending adjudication.

Analysis: The basis of duty liability, namely whether valuation was to be made on cost basis or sale value basis, had not yet been finally determined by the proper authority. In that situation, rejection of the refund claim merely because the underlying show cause notice was pending was not justified.

Conclusion: The refund claim could not be finally rejected on that ground and the matter was required to be reconsidered after adjudication of the show cause notice.

Ratio Decidendi: A refund claim cannot be denied on the ground that the core valuation dispute is still pending final adjudication; such claim must be decided afresh after the underlying issue is concluded.

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