Consequential refund cannot be withheld during pending reassessment when no stay exists and the earlier order has attained finality.

Consequential refund arising from an earlier Tribunal order could not be withheld merely because re-assessment and redetermination of duty were pending, where no stay of the earlier order had been obtained. The order setting aside the duty demand had attained operative finality, and the field formation was bound by the applicable Board circulars requiring refund to be granted within the prescribed period. On that basis, the pending internal reassessment did not justify retention of the amount, and the refund was directed to be processed and disposed of in accordance with law.

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Issues: Whether consequential refund arising from the Tribunal's earlier order could be withheld on the ground that re-assessment and redetermination of duty were pending, in the absence of any stay of the earlier order.

Analysis: The earlier order setting aside the duty demand had attained operative finality and no stay had been obtained from any higher forum. The Board's circulars on grant of consequential refund within the prescribed period were treated as binding on the field formation. In these circumstances, the pendency of internal re-assessment could not justify withholding refund when the assessment had, for the time being, ceased to operate against the appellant.

Conclusion: The refund was directed to be processed and disposed of in accordance with law; the request to retain the amount pending re-assessment was rejected.

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