Refund claims cannot succeed against an unchallenged assessment order unless the assessment is first set aside or modified.

A refund claim in customs cannot be maintained against an assessment order that has neither been challenged nor altered. Where imported goods were assessed without the claimed exemption benefit and duty was paid on that assessment, the governing principle is that refund cannot be granted contrary to the assessment unless the assessment is first set aside, modified, or reviewed. On that basis, the refund claim was held not maintainable and the Revenue's objection prevailed.

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Issues: Whether a refund claim could be maintained when the original assessment of the imported goods had not been challenged or modified.

Analysis: The imported goods were assessed without extending the claimed exemption benefit, and duty was paid on that assessment. The refund claim was rejected by the original authority for deficiencies, and the appellate order allowing refund was questioned on the ground that the assessment itself remained unchallenged. The governing principle applied was that a refund claim cannot be pursued contrary to an assessment order unless that assessment is first set aside, modified, or reviewed.

Conclusion: The refund claim was not maintainable in the absence of any challenge to the assessment order, and the Revenue's objection succeeded.

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