Refund recovery cannot stand when the original tribunal order remains unchallenged and in force.

Recovery of a refunded amount was unsustainable where the Tribunal's earlier order allowing the assessee's refund claim remained in force and had not been set aside. The recovery proceeding was based on the same dispute, but in the absence of any appellate reversal of the earlier order, there was no legal basis to disturb the Commissioner's decision dropping the recovery proceedings. The Revenue's challenge was therefore rejected.

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Issues: Whether the demand for recovery of the refunded amount could be sustained when the Tribunal's earlier order in favour of the assessee had not been set aside.

Analysis: The refund dispute had already been carried in appeal and the Tribunal's order allowing the assessee's claim remained in force. The impugned recovery proceeding was founded on the very same dispute, but no appellate court had set aside the Tribunal's earlier decision. In the absence of any reversal of that order, there was no basis to disturb the Commissioner's decision dropping the recovery proceedings.

Conclusion: The recovery of the refund could not be sustained and the Revenue's appeal was rejected.

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