Excise duty refund cannot be withheld merely because an appeal is pending without an operative stay.

Refund of excise duty became payable once the appellate order set aside the demand, and the mere filing of a further appeal with a stay application did not suspend that order. In the absence of an operative stay, the authorities could not withhold refund only because an appeal had been preferred. The petitioner was held entitled to refund of the excise duty amount, and payment was to be made within one month unless a stay order was obtained within that period.

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Issues: Whether the petitioner was entitled to refund of the excise duty amount despite the department having filed an appeal and a stay application.

Analysis: The refund had become due after the appellate order set aside the demand. The pendency of a further appeal, by itself, did not amount to a stay of that appellate order. In the absence of an operative stay, the authorities could not refuse refund on the ground that an appeal had been preferred.

Conclusion: The petitioner was entitled to refund of Rs. 79,493.97, and the respondents were directed to pay the amount within one month unless they obtained a stay order within that period.

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