Finality of unchallenged adjudication order bars collateral attack through refund claim

An appealable adjudication order fixing annual capacity under Section 3A attains finality if not challenged by statutory appeal, and its correctness cannot later be reopened indirectly in a refund proceeding. The assessee had accepted the capacity determination and paid duty accordingly, so the refund claim was not maintainable insofar as it sought to assail that unchallenged order. The issue was decided against the assessee and in favour of the Revenue.

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Issues: Whether the assessee could, in a refund claim, challenge the correctness of an appealable order fixing annual capacity of the stenter which had not been appealed against.

Analysis: The order determining annual capacity under Section 3A was an appealable adjudication order. The assessee accepted that order, paid duty accordingly, and did not pursue the statutory appeal. A refund proceeding could not be used to reopen the correctness of that subsisting order. The principle applied was that once an appealable adjudication order attains finality for want of appeal, its correctness cannot later be questioned indirectly through a refund claim.

Conclusion: The refund claim was not maintainable to the extent it sought to assail the unchallenged capacity-determination order, and the issue was decided against the assessee and in favour of the Revenue.

Ratio Decidendi: An appealable adjudication order that is not challenged in accordance with the statute attains finality and cannot be collaterally attacked in a subsequent refund proceeding.

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