Refund claim cannot be reopened after final appellate decision on merits; excess service tax refund with interest upheld.

A second show cause notice proposing rejection of a refund claim could not be sustained after the Tribunal had already allowed the appeal and decided the dispute on merits. The prior appellate order was treated as disposing of the refund controversy in full, so the department could not reopen the same claim on the footing that part of it remained unconsidered. The refund claim for excess service tax paid under Notification No. 1/2006-S.T. was therefore maintainable, and the excess tax was ordered to be refunded with interest.

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Issues: Whether the second show cause notice proposing rejection of the refund claim could stand when the Tribunal had already allowed the appeal and decided the matter on merits, and whether the assessee was entitled to refund of the excess service tax with interest.

Analysis: The Tribunal's final order was read as having dealt with the dispute in entirety and not merely with the question of unjust enrichment. In that situation, the department could not reopen the same refund claim by issuing a further show cause notice on the premise that a part of the claim had not been covered. The impugned notice was therefore inconsistent with the final appellate determination, and the refund claim based on excess payment of service tax under Notification No. 1/2006-S.T. was held to be maintainable.

Conclusion: The second show cause notice was quashed and the Assistant Commissioner was directed to refund the excess service tax with interest, in favour of the assessee.

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