Conditional excise refund depends on compliance with prior bond or security directions before release of duty refund.

Refund of duty paid twice on the same consignment under Rule 173L of the erstwhile Central Excise Rules, 1944 was held conditional on compliance with earlier judicial directions requiring execution of a bond or security. The claim could not be sanctioned outright because the stipulated security had not yet been furnished, but the appellant was to be given an opportunity to comply. Upon execution of the bond in the prescribed format and proof of compliance before the jurisdictional authority, the refund was directed to be released.

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Issues: Whether the appellant was entitled to refund of duty paid twice on the same consignment, and whether such refund could be granted only upon compliance with the earlier directions requiring execution of bond or security.

Analysis: The refund claim arose under Rule 173L of the erstwhile Central Excise Rules, 1944 in respect of duty paid again on goods returned to the factory and cleared after re-packing. The matter was controlled by the earlier directions of the High Court, under which refund was to follow only on furnishing adequate security to the satisfaction of the Tribunal. As the required security had not been furnished, the claim could not be sanctioned outright. At the same time, to give effect to the judicial directions and meet the ends of justice, the appellant was entitled to be afforded an opportunity to comply by executing the requisite bond.

Conclusion: The refund was not denied on merits, but it was made conditional upon the appellant furnishing the bond for the refund amount in the prescribed format and proving execution before the jurisdictional authority; upon such compliance, the refund was to be paid.

Final Conclusion: The appellant obtained conditional relief, and the refund was directed to be released after compliance with the bond requirement flowing from the earlier court directions.

Ratio Decidendi: Where refund is permitted only subject to prior judicial directions, compliance with the stipulated bond or security condition is a necessary prerequisite for release of the refund.

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