Refund claim maintainability turns on prior merits decision and finality, not merely on a separate challenge to assessment.

A refund claim cannot be rejected as not maintainable merely because the assessment order was not separately challenged where the adjudicating authority had already entertained and decided the refund on merits and the Revenue did not appeal that order. In those circumstances, the admissibility of the refund had attained finality, and the appellate authority could not deny relief solely on the ground of absence of an independent challenge to assessment. The proper course was a merits-based reconsideration by the adjudicating authority after giving the importer a reasonable opportunity of hearing. The rejection on non-maintainability was therefore unsustainable, and the matter was remanded for fresh decision on merits.

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Issues: Whether the refund claim could be rejected as not maintainable on the ground that the assessment order was not separately challenged, when the adjudicating authority had already entertained the claim for refund and the Revenue had not appealed against that order.

Analysis: The refund claim had been considered on merits by the adjudicating authority, and the Revenue did not challenge that order. In those circumstances, the admissibility of the refund had attained finality. The appellate authority could not, in the importer's appeal, reject the claim solely on the ground that the assessment was not independently assailed. The proper course was to have the matter decided on merits by the adjudicating authority, after giving the importer a reasonable opportunity of being heard.

Conclusion: The rejection of the refund claim on the ground of non-maintainability was unsustainable, and the matter was remanded to the adjudicating authority for fresh on merits after hearing the appellant.

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