Binding effect of final tribunal orders bars partial rejection of refund claims and requires strict implementation of the adjudged relief.

A final Tribunal order granting full cash refund of transitional credit under Rule 57H had attained finality because the department did not challenge it. The commentary states that, once entitlement was conclusively decided, the adjudicating authority was bound to implement the order and could not reopen, partially reject, or re-agitate the same refund claim. It also notes that the partial denial was made without a show cause notice, reinforcing its unsustainability. The operative point is that a lower authority must give effect to a final appellate order according to its terms, and consequential relief follows from that binding effect.

---

---

Issues: Whether the assessee was entitled to full cash refund of transitional credit under Rule 57H of the Central Excise Rules, 1944 and whether the lower authorities could partially reject the refund after the Tribunal had already decided the entitlement.

Analysis: The Tribunal had earlier categorically held that the assessee was entitled to cash refund of Rs. 11,03,303/-, and that decision had attained finality as it was not challenged by the department. Once the issue stood finally decided, the adjudicating authority was bound to implement that order and had no power to re-agitate or re-adjudicate the same question. The partial rejection of refund was also made without issuing a show cause notice, and the attempt to adjust or deny the amount was inconsistent with the earlier final order.

Conclusion: The partial rejection of the refund was unsustainable. The assessee was entitled to the full cash refund, and the impugned order was set aside.

Final Conclusion: The dispute was resolved in favour of the assessee by enforcing the binding effect of the earlier final order and directing grant of the refund with consequential relief.

Ratio Decidendi: A lower authority cannot reopen or partially deny a claim that has already been conclusively allowed by a final tribunal order; such order must be implemented according to its terms.

---