Appellate order remains binding absent stay, requiring reassessment and refund of excess customs duty

An appellate order directing reassessment of imported goods for benefit of the notification remained operative because no stay had been granted. The department's later appeal did not suspend that direction, and the absence of interim relief meant the respondents were bound to implement the appellate mandate. They could not withhold refund of excess customs duty merely because their appeal was pending. The operative effect was that the appellate order had to be acted upon until set aside or stayed by a competent forum.

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Issues: Whether the respondents were bound to give effect to the appellate order directing reassessment and refund of excess customs duty in the absence of any stay of that order.

Analysis: The appellate authority had allowed the assessee's appeal and directed reassessment of the imported goods for the benefit of the notification. The department's further appeal was filed belatedly and, crucially, the Tribunal declined to stay the operation of the appellate order. In the absence of any stay, the department remained obliged to implement the appellate direction and could not withhold the refund merely because its own appeal was pending.

Conclusion: The respondents were bound to act on the appellate order and refund the excess duty to the petitioner.

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