Refund after appellate relief cannot be withheld merely because an appeal is filed without a stay order.

Refund arising from an appellate relief order cannot be withheld merely because the department has filed an appeal, unless a stay order has been obtained. The governing circulars require refund or rebate consequent on an order of the Commissioner or Commissioner (Appeals) to be released, subject to the appeal outcome but not kept in abeyance indefinitely. Where no stay was produced and more than seven months had passed after the appellate order, the authorities were required to implement that order promptly. The refund was therefore directed to be disbursed with applicable interest.

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Issues: Whether the departmental authorities could withhold refund arising from an appellate order merely because an appeal had been filed, in the absence of any stay order, and whether the refund was liable to be directed to be released with interest.

Analysis: The appellate authority had already allowed the refund claim, and the departmental side had only stated that an appeal had been preferred without producing any stay order. The governing circulars specifically state that refund or rebate consequent upon an order of the Commissioner or Commissioner (Appeals) should not be withheld unless a stay order has been obtained. The claim could remain subject to the outcome of the appeal, but that did not justify indefinite non-compliance. Since more than seven months had elapsed after the appellate order, the authorities were required to act promptly and implement the order.

Conclusion: The refund could not be withheld in the absence of a stay order, and the respondents were directed to implement the appellate order and disburse the refund with applicable interest.

Ratio Decidendi: Refund arising from an appellate relief order cannot be withheld merely on the ground that an appeal has been filed, unless a stay order has been obtained.

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