Binding appellate refund finding prevails over later limitation rejection; refund was held payable.

The Assistant Collector could not reject a refund claim on limitation after the Collector had already allowed the appeal and directed refund on the finding that the applications were within time. The later order under Rule 11 was inconsistent with the binding appellate determination and was therefore unsustainable. The rejection of refund was set aside and the refund was held payable.

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Issues: Whether the Assistant Collector could refuse refund on limitation after the Collector had already allowed the refund claim, and whether the impugned order rejecting the refund was sustainable.

Analysis: The Collector of Central Excise had already allowed the appeal and directed grant of refund after recording that the refund applications were within the statutory time limit. In view of that appellate order, there was no occasion for the Assistant Collector to pass a further contrary order on the same refund claim. The later rejection on the ground of limitation under Rule 11 was therefore inconsistent with the binding appellate determination.

Conclusion: The rejection of refund on limitation was set aside and the refund was held to be payable.

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