Interim stay on refund appropriation denied where no immediate practical benefit from the relief was shown.

Appropriation of a sanctioned refund against an earlier duty demand was challenged while the appeal on that demand remained pending after remand. The Tribunal noted that the underlying demand had not yet been decided on merits, so the Revenue could not treat it as presently due with certainty. It accepted that the Board's circular and cited decisions supported objection to immediate appropriation, but held that interim relief is justified only where it yields a practical, immediate benefit. As no effective or useful relief would follow from staying the impugned order, the request for stay was rejected.

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Issues: Whether the assessee was entitled to stay of operation of the order appropriating the sanctioned refund towards an earlier demand of duty pending adjudication of the appeal against that demand.

Analysis: The demand against which the assessee had a pending appeal was yet to be considered on merits pursuant to remand, so the Revenue could not assert with certainty that the amount was presently due. The Board's circular and the cited decisions therefore supported the assessee's objection to immediate appropriation. Even so, a stay can be granted only if it serves a practical purpose and yields an immediate benefit to the applicant. As no such efficacious relief was shown to flow from staying the impugned order, the Tribunal declined to pass a futile order.

Conclusion: The request for stay was rejected.

Ratio Decidendi: Interim relief will not be granted where, despite arguable merits, the applicant fails to show that the order sought will produce an effective or immediate practical benefit.

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