Binding appellate order controls refund relief after levy is set aside; lower authority cannot reopen the issue.

Once the levy was set aside in appeal, the assessee became entitled to consequential refund of the service tax and interest paid under the retrospective levy. The refund authority could not reopen or question the correctness of the binding appellate order, because it had no jurisdiction to sit in judgment over a concluded appellate determination. The Court therefore treated the refund claim as maintainable and held that consequential relief must follow the setting aside of the levy. The revenue's challenge failed because the lower authority had exceeded its jurisdiction by disregarding the appellate order.

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Issues: Whether refund of service tax and interest was admissible after the assessee's appeal against the levy had been allowed, and whether the refund authority could ignore or sit in judgment over the appellate order.

Analysis: The assessee had discharged the service tax and interest liability arising from the retrospective service tax provisions and, after the levy was set aside in appeal, sought refund of the amounts paid. The refund authority rejected the claim by questioning the correctness of the appellate order and the appellate authority also declined relief. The Court held that once the appellate order had gone in favour of the assessee, the authority dealing with refund could not reopen that decision or test its correctness, as the appellate order was binding and the assessee was entitled to the consequential benefits flowing from it. The Court further held that the refund authority had exceeded its jurisdiction in disregarding the appellate determination.

Conclusion: The refund claim was held to be maintainable, and the assessee succeeded; the revenue's appeal was liable to fail.

Final Conclusion: The decision affirms that a subordinate refund authority cannot refuse consequential relief by questioning a binding appellate order, and that relief must follow once the levy itself has been set aside.

Ratio Decidendi: A lower authority deciding refund or consequential relief cannot sit in appeal over a binding appellate order, and once the levy is set aside the assessee is entitled to the consequential refund benefits.

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