Reopened assessment cannot bar refund claim; earlier finalized order must be examined afresh on merits in reopened proceedings.

Where the department reopens a finalized assessment for the same period on a different ground, the assessee may contest all connected issues in defence and the earlier assessment cannot be treated as conclusive to exclude the refund claim. The reopened proceedings required reconsideration of the refund claim on merits, and the adjudicating authority was directed to examine the claim afresh. The impugned order was set aside and the matter remanded for fresh adjudication.

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Issues: Whether the earlier assessment order could be treated as non est once the department reopened the matter by issuing a subsequent show cause notice for the same period, and whether the refund claim had to be reconsidered on merits.

Analysis: The assessment for the relevant period had already been finalized, but a later show cause notice was issued for the same period on a different ground. In such reopened proceedings, the appellant was entitled to contest all issues in defence, and the earlier finalized assessment could not be treated as conclusive so as to shut out the refund claim. Reliance was placed on the principle that once the department reopens assessment and seeks differential duty, the assessee may challenge the basis of the demand and all connected issues must be examined on merits.

Conclusion: The earlier order was treated as non est for the purpose of the reopened proceedings, and the refund claim was required to be reconsidered by the adjudicating authority on merits in favour of the assessee.

Final Conclusion: The impugned order was set aside and the matter was remanded for fresh adjudication of the refund claim on merits.

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